Chronicle Editor
Nqobile Bhebhe/Sikhulekelani Moyo, Business Reporters
THE Government has announced the introduction of new $100 notes whose date of circulation is yet to be set.
The move is expected to address cash shortages and enhance ease of transacting by the members of the public amid concern over the resurgence in inflationary pressures.
On Monday, the central bank raised the bank policy rate to 80 percent per annum from 60 percent among other measures meant to curb speculative borrowing, tackling illicit parallel market activity and restoring financial sector stability.
The $50 note injected last July has been the highest denomination and widely circulating as the $20, $10, $5 and $2 are rarely circulating due to inflation, which is threatening aggregate demand.
Through Statutory Instrument 68A of 2022 642A, which announced the development and was gazetted on Tuesday, the Government stated:
“The Minister of Finance and Economic Development has hereby, in terms of Section 40(3) of the Reserve Bank of Zimbabwe Act [Chapter 22:15], made the following notice specifying the matters determined by the President in terms of subsection (2) of that section: —
“This notice may be cited as the Reserve Bank of Zimbabwe (Issue of One Hundred Dollar Banknote) Notice, 2022. Issue of one-hundred-dollar banknote” reads part of the statement.
“The design of the one hundred dollar banknote shall be as follows – (a) on the front side the dominant feature shall be the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the visually impaired recognition feature to the left, latent image showing the denomination, windowed security strip inscribed “RBZ” with colour shift from red to green, watermark with highlighted inscription “RBZ” and see-through of Zimbabwe Bird looking to the left in perfect register, as secondary features; “and (b) on the back side there shall be an impression of Great Zimbabwe Monument and the Baobab Tree, gold coloured iridescent band showing the denomination of the note and see-through of the Zimbabwe Bird looking to the right.”
The Zimbabwe dollar was re-introduced in June 2019 when Government abolished the use of multiple foreign currencies in an effort to fix shortages of goods on the market by ensuring competitiveness of the local industry.
The multi-currency system was introduced more than a decade ago to address the problem of hyperinflation.
Meanwhile, a total of US$32,8 million was allotted to bidders this week at the weekly foreign currency auction system, lower than previous week’s US$37,6 million.
According to the latest update from the RBZ, a total of 362 bids were accepted at the main auction at this week’s auction while the Small-to-Medium Enterprises auction had 187 bids.
Since its inception in June 2020, raw materials continue to dominate the demand for foreign currency at the official channel.
The latest forex auction saw a total of US$27,5 million being allotted under the main auction platform while US5,3 million went to the SMEs auction.
Last week US$31,1 was allotted to the main auction while US$6,5 was allotted to the SMEs auction.
The productive sector apart from raw materials, also needs forex for machinery and equipment, consumables, pharmaceuticals and chemicals.
Forex is also needed to meet other essentials such as loans, education, dividends, retail and distribution, paper and packaging as well as electricity.
At this week’s auction the Zimbabwe dollar traded at 145,9 against the United States dollar compared to last week’s $142,4 against the green back.
The forex auction is continuing to benefit the productive sector in a bid to promote industrial growth.
Close to US$3 billion has been allotted to the productive sector since the beginning of the weekly foreign currency auction.
Online Reporter