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ZIMBABWEANS will start exchanging their Zimdollar notes for US dollars on Monday as the demonetisation process begins.
Addressing journalists yesterday afternoon, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said the demonetisation process would start this month and close by the end of September.
“The demonetisation process which will run from June 15 to September 30, 2015 will deal with all non-loan bank accounts as at December 31, 2008 as well as cash held by the public.
“The demonetisation process is not compensation to people who lost their money during the 2008 period of hyper-inflation but is the removing of legal status of a currency unit, and in this case the currency unit is the Zimdollar that we are demonetising,” said the governor.
After September 30, 2015 bank notes that have not been exchanged shall be considered demonetised or decommissioned. “Demonetisation is an important and necessary process to align with best practice and in this case of Zimbabwe to comply with the multiple currency system and we can’t have two legal currency systems.
“Cash holders can exchange their holdings at any bank, building society, POSB and Zimpost, while people with their money in accounts will be exempted from bank charges and government tax,” he said.
In terms of payment, Mangudya said, banks will pay the equivalent US dollars for each account balance as at December 31, 2008 being converted as follows:
“Accounts with zero to Z$175 quadrillion will be paid $5 and accounts with above Z$175 quadrillion will be paid the equivalent after applying the UN exchange rate of US$1/Z$35 quadrillion or US$1/Z$35,000 revalued.
“Cash customers will get their exact US$ equivalent of the converted amount starting from U$ 1 cent up to $50 and when the US equivalence exceeds US$50 payment will be credited into their respective bank accounts,” he said.
Mangudya added that banks will accept all notes without value from customers on behalf of the RBZ. — BH24
Online Reporter