Finance:Zimbabwean bond coins
| Zimbabwean bond coins | |
|---|---|
 | |
| Country |  Zimbabwe |
| Issuers | Reserve Bank of Zimbabwe (2014–present) |
| Denominations | 1, 5, 10, 25, 50 Cents Bond Coin, 1 Dollar Bond Coin, 2 Dollar Bond Coin |
The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2014. The coins are supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by Afreximbank (the African Export–Import Bank).[1] To date coins worth US$15 million have been struck out of the total $50 million available. The coins were first issued in denominations of 1, 5, 10, and 25 cents and are pegged to the corresponding values in U.S. dollars.[2] A 50 cents bond coin was released in March 2015.[3]
The coins are being issued to remedy a lack of small change resulting from the absence of a solid seigniorage contract with the U.S., South Africa or any of several other countries whose currencies, including the U.S. dollar and the euro, are being used in the multi-currency system that arose in 2009, when Zimbabwe abandoned the Zimbabwean dollar in response to several cycles of hyperinflation. The Zimbabwean economy being too frail and small to pay the interest which would come with a seigniorage contract, the country chose instead to implement a multi-currency environment based on the U.S. dollar. However, this arrangement has meant a shortage of small change in coins.[2][4][5][6]
Public reaction to the bond coins has been extremely skeptical, with widespread fear that they are the government's first step to reintroducing an unreliable Zimbabwean dollar.[5][7] John Mangudya, the Governor of the Reserve Bank of Zimbabwe, has denied that the Zimbabwean dollar is being reintroduced.[citation needed]
The bond coins, struck at the South African Mint in Pretoria,[8] are the first Zimbabwean coins since 2003.
A bimetallic one-dollar bond coin was released on 28 November 2016[9] along with two- and five-dollar Zimbabwean bond notes.[10] A bimetallic two-dollar bond coin was released in 2019, and circulates with its equivalent banknote in circulation.[11]
Coins in Circulation
| Denomination | Year | Obverse | Reverse | Weight | Diameter | Material | Ref. | 1 Cent Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "1" surrounded by "ONE CENT BOND COIN" | 2.45 g | 17 mm | Copper-plated steel | [12] | 5 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "5" surrounded by "FIVE CENTS BOND COIN" | 2.85 g | 18 mm | Brass-plated steel | 10 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "10" surrounded by "TEN CENTS BOND COIN" | 3.80 g | 20 mm | Brass-plated steel | 25 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "25" surrounded by "TWENTY-FIVE CENTS BOND COIN" | 4.80 g | 23 mm | Nickel-plated steel | 50 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "50" surrounded by "FIFTY CENTS BOND COIN" | 6.00 g | 25 mm | Nickel-plated steel |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Dollar Bond Coin | 2016 | RBZ in various positions with coin date centered | Enclosed in circle with "1$" surrounded by "ONE DOLLAR BOND COIN" | 9.06 g | 28 mm | Brass ring with a nickel-plated steel center plug | |||||||||||||||||||||||||||||||||||||
| 2 Dollars Bond Coin | 2018 | RBZ in various positions with coin date centered | Enclosed in circle with "2$" surrounded by "TWO DOLLAR BOND COIN" | 11.11 g | 28 mm | Cupronickel ring with an Aluminum-bronze center plug |
Bond coins and the RTGS dollar
In February 2019, the RBZ Governor, announced that the bond coins would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the Real Time Gross Settlement (RTGS) dollar.[13]
See also
- Zimbabwean bond notes
- Zimbabwean bonds
- Zimbabwean dollar
- Real Time Gross Settlement (RTGS) Dollar
References
- ↑ "RBZ says bond notes launch Monday". www.new zimbabwe. http://www.newzimbabwe.com/news-33463-RBZ+says+bond+notes+launch+Monday/news.aspx.
- ↑ 2.0 2.1 "Zimbabweans suspicious of new 'bond coins'". Johannesburg, South Africa: Times Media Group. 22 December 2014. http://www.timeslive.co.za/africa/2014/12/22/zimbabweans-suspicious-of-new-bond-coins.
- ↑ Chawafambira, Kudzai (2014-12-06). "RBZ unveils bond coins". Harare, Zimbabwe. http://www.dailynews.co.zw/articles/2014/12/06/rbz-unveils-bond-coins.
- ↑ "Zimbabwe launches new coins to solve change shortage". 2014-12-24. http://www.thetelescopenews.com/business/5959-zimbabwe-launches-new-coins-to-solve-change-shortage.html.
- ↑ 5.0 5.1 Sanchez, Dana (2015-01-09). "Zimbabweans Suspicious Of New Bond Coins In Circulation". http://afkinsider.com/84114/zimbabweans-suspicious-new-bond-coins-circulation/.
- ↑ Hanke, Steve H; Alex KF Kwok (Spring–Summer 2009). "On the Measurement of Zimbabwe's Hyperinflation". The Cato Journal. http://www.cato.org/pubs/journal/cj29n2/cj29n2-8.pdf. Retrieved 2015-02-11.
- ↑ "Zimbabweans sceptical of new bond coins". Johannesburg, South Africa: M&G Media. 2014-12-22. http://mg.co.za/article/2014-12-22-zimbabweans-skeptical-of-new-bond-coins.
- ↑ "RBZ introduces coins". Harare, Zimbabwe. 2014-12-06. https://www.herald.co.zw/rbz-introduces-coins/.
- ↑ "Bond notes finally out" (in en). http://www.herald.co.zw/bond-notes-finally-out/.
- ↑ "Zimbabwe note launch stokes currency fears" (in en). BBC News. 28 November 2016. https://www.bbc.com/news/business-38128236.
- ↑ 2 Dollars Bond Coin Numista (https://en.numista.com). Retrieved on 2019-12-12.
- ↑ Michael, Thomas (2016). 2017 Standard Catalog of World Coins, 2001-Date. Krause Publications. pp. 1392. ISBN 978-1440246555.
- ↑ "Monetary Policy Statement - Establishment of an Inter-Bank Foreign Exchange Market to Restore Competitiveness". https://www.rbz.co.zw/documents/mps/mpsfeb2019.pdf.
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