New money for Zim stuck in Namibia

October 11, 2011 2:21 pm 0 comments

The Minister was responding to a question by an MDC-T legislator for Magwegwe, Magalela Sibanda, on what the government was doing about retailers and banks that were refusing to accept soiled notes.

The US dollar notes that have been in circulation since Zimbabwe abandoned the local dollar in 2009, have mostly become unusable. Many retailers have stopped accepting them, while some banks were reportedly charging a fee to change the notes. At the same time, a serious shortage of coins has seen people being forced to accept small items such as sweets, chocolates and pens as changes. In some cases, shoppers were given ‘credit notes’ to be redeemed at a later stage.

But according to Minister Biti the government has made plans to inject new bank notes and coins into the banking system. He told Parliament that the government, through the Bankers Association of Zimbabwe, “has negotiated with certain institutions in America that I will not name at the moment that will bring not only new notes but also coins.” He did not detail when the money will arrive in Zimbabwe.

Economist John Robertson welcomed this announcement, explaining that the state of the money in circulation was dire. He added that, although the details of the arrangement Biti has referred to, have not been public it was likely something that involved a “straight swap” of cash.

“Zimbabwe doesn’t have the money to buy new notes, so I think this would most likely have been an agreement based on a swap of the old notes for the new ones. The expense would have been in the shipment, and the Bankers Association would have incurred this cost,” Robertson said.

 

Article source: http://www.swradioafrica.com/news061011/newmoney061011.htm

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