New bond notes-key questions answered

When will the notes start circulating?

RBZ governor John Mangudya told reporters the notes would be produced “after two months.” They were still at design stage, he said.

Can I use it outside the country?

No. Bond notes only work in Zimbabwe. The plan is to make sure the cash stays in Zimbabwe.

So how does RBZ plan to solve the currency crunch?

RBZ’s plan evolves around the following: limiting daily withdrawals, increasing the use of the Rand, giving priority of US dollar spending to key areas like fuel and machinery, converting export receipts into rand and other currencies, and increasing usage of electronic and plastic money.

RBZ says Rand use was down to five percent on the market, from 49 percent when the multicurrency system started in 2009. Now, for every dollar that comes into Zimbabwe from exports, 40 cents will be converted into rand and 10 cents into Euro.

So if I send my mother money from here in the UK, will she get part of it in Rand?

According to the RBZ, remittances and NGO funds will not be converted to Rand.

What are the withdrawal limits?

You can now withdraw $1 000, 1 000 Euros and R20 000 per day. In addition to this, you are now only allowed to take similar maximum amounts out of the country at a time.

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