HARARE: Local banks have so far converted $4 million worth of old Zimbabwean dollar notes under the Government’s demonetisation programme which commenced on June 15 this year, latest figures show.
Under the programme, whose aim is to remove the legal status of the Zimbabwean dollar currency and runs till September 30, Government has set aside a budget of $20 mil- lion.
The local currency ceased to be legal tender when the country adopted use of multi-currencies in 2009 to tame runaway inflation that had ravaged its value.
Under the demonetisation programme, which is an exchange process, a rate of $1/Z$35 quadrillion for bank balances and $1/Z$25 trillion for walk-in customers is being used. Zimbabwe dollar notes that are being accepted for exchange under the programme are those issued in 2008 and 2009.
“The policy objective (of the demonetisation programme) is to promote consumer and business confidence by providing credibility to the multiple-currency system and legally retiring the local unit,” the Reserve Bank of Zimbabwe (RBZ) said.
And figures released by the central bank show that a total of $301 000 had been paid out to walk-in customers at various financial institutions. “The bank is satisfied with how the demonetisation programme has progressed so far,” the RBZ said.
The central bank said Zimpost, which has also been roped in in the programme, had assisted by undertaking cash exchanges in rural areas that have no banking facilities nearby.
“Notably, frantic efforts are being made by the bank to deal with customers of closed banks and is liaising with the Deposit Protection Corporation in this regard,” the RBZ said. A number of banks have closed shop in the last six years due to a litany of challenges fuelled by absence of good governance and capitalisation constraints.
