Zimbabwe releases $12 million more in bond notes, eases withdrawal limits

PRESS STATEMENT

EXPORT INCENTIVE SCHEME AND THE AVAILABILITY OF CASH TO THE BANKING PUBLIC

In line with the gradual and measured approach to disburse bond notes into the market on a drip-feed basis, the Reserve Bank of Zimbabwe is pleased to advise the public that bond notes valued at $12 million were disbursed during the week ending 16th December 2016. This brings the total amount of bond notes disbursed from commencement on the 28 November to 16 December 2016 to $29 million.

The Bank is also pleased to advise that all tobacco growers who sold their tobacco this year through the auction floors, including contracted tobacco growers, have now benefited from the 5% export incentive scheme. This move is expected to provide impetus to tobacco farmers to continue with both reaping and processing of this year's tobacco crop.

The Bank is encouraged by the smooth circulation within the domestic economy of bond notes which were primarily introduced to finance the export incentive scheme of up to 5% payable to exporters of goods and services and diaspora remittances. A cumulative total of $6.2 million bond notes have been deposited by the banking public at banks as at the 16th of December 2016. Against this background, bond notes shall fortuitously and subserviently go a long way to mitigate cash shortages within the economy. Clearing of cash queues at banks can never be an overnight event. It is a process.

The Bank is also encouraged by the manner in which the banking public continues to embrace the use of plastic money. We would like to urge financial institutions and other service providers to ensure that point of sale and other electronic payment facilities are spread throughout the country.

In view of this positive development and the need to ensure that thebanking public is not continuously constrained by the lower withdrawal limits on bond notes of $25 and $50 per day, the Bank has with immediate effect increased the daily bond note withdrawal limit to $100 per day or $300 per week for banks that have instituted weekly withdrawal limits.

We trust that these measures will go a long way towards making easy for the public to transact during the festive season.

Dr J P Mangudya
Governor
Reserve Bank of Zimbabwe
19 December 2016

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