Author Topic: Zimbabwe zeroes  (Read 9690 times)

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Offline chrisild

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Re: Zimbabwe zeroes
« Reply #30 on: July 29, 2011, 06:54:52 PM »
It's not actually me who is right here but Auntie Beeb. ;D And I suppose we should not take "cents" too literally. That probably means 1c coins as well as other US coin denominations. Not the half, I suppose, but why not the $1? Neighboring South Africa has a 5 rand coin - notes "start" at 10 rand which is about $1.50 ...

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Offline Bimat

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Re: Zimbabwe zeroes
« Reply #31 on: October 06, 2011, 07:28:12 PM »
New money for Zim stuck in Namibia

By Alex Bell
06 October 2011

A supply of new banknotes and coins for Zimbabwe is stuck in Namibia, with the government still working out the logistics of transporting the multi-ton shipment.

Finance Minister Tendai Biti told Parliament on Wednesday that the shipment of cash, the product of a deal with unnamed US financial institutions, weighs “tons and tons.”

“The problem we are having now is of transport from Walvis Bay (Namibia) to Zimbabwe, but it is a problem that we have attended to,” Biti said, without giving more detail.

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.

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