Traders, kombis, shops rejecting bond notes, as RBZ governor sabotages his new currency

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Some informal traders and shops have started rejecting bond notes, demanding US dollars only.

This news crew visited a number of shopping centres like Chiremba, Munyuki, Overspill in Epworth, shops and traders were indeed rejecting bond notes. The shops were not giving customers change in local currency either.

This means customers were being indirectly forced to buy other items like sweets, ballpoint pens, etc in place of change.

Traders in Mbare, Kombis are also rejecting the bond notes.

Apparently, the Reserve Bank of Zimbabwe (RBZ) has implored shops to continue accepting old ZWL notes.

“The transacting public has a transitional period of up to 21 days to convert their Zimdollar notes to ZiG, in line with Statutory Instrument 60 of 2024.

“Accordingly, the Zimbabwe dollar notes will continue to be used for transactional purposes,” RBZ says.

The rejection of bond notes came after RBZ governor John Mushayavanhu introduced new currency known as Zimbabwe Gold (ZiG) while presenting the Monetary Policy statement and gave the transacting public 21 days to dispose the old notes (bond notes).

Mushayavanhu emphasised that the conversion of Zimbabwe dollar balances to ZiG will begin immediately, with a 21-day window for citizens to exchange their ZWL notes for the new currency.

He stated, “I don’t believe in taking people’s money. The ZiG will circulate with other currencies in the basket.” The interbank rate as of April 5, 2024, will determine the conversion rate.

However, individuals holding ZWL$100,000 worth of notes will face scrutiny, requiring them to explain the source and purpose of their holdings.

Apparently, the central bank governor has been accused of sabotaging the new currency a day after launching it.

In a move that has raised eyebrows, Mushayavanhu has been accused of “sabotaging” the ZiG currency by insisting on USD payments for an upcoming Monetary Policy Statement Breakfast Review Meeting, where he is set to be the keynote speaker.

Social media platforms have erupted with reactions from prominent figures and the public alike.

Raymond Majongwe, the Secretary General of the Progressive Teachers Union of Zimbabwe, lamented on Twitter.

“Why not show CONFIDENCE in the ZiG by charging in this new currency? They are already sabotaging the new kid on the block. Vega zvavo.”

Similarly, prominent lawyer and former legislator Advocate Fadzayi Mahere questioned the governor’s faith in the ZiG currency, tweeting:

“Dear @nickmangwana, Governor Mushayavanhu launched a new structured currency yesterday which he says he believes in and is “backed by gold”.

“Why is he charging USD for his speaking engagement days after the launch? If the Governor has no faith in the ZiG, why should the public have confidence in it?”

Renowned investigative journalist Hopewell Chin’ono questioned the point in discussing the ZiG currency at an event that doesn’t accept it as payment, saying:

“These guys are a real big joke, I tell you! The central bank governor of Zimbabwe, John Mushayavanhu, introduced a new local currency called the ZiG and encouraged Zimbabweans to have faith and confidence in it.

“Then, a day after that, a poster comes out advertising a breakfast meeting where he will talk about the new currency….and those attending are being charged in US Dollars! You could never make this crap up, even if you tried, I tell you!”

Senator Douglas Mwonzora and academic Chipo Dendere also joined in the chorus of disbelief, with Dendere calling the governor “a clown” for his contradictory actions.

“Zimbabwe’s new governor is a clown. Yesterday he introduced a new currency ZiG. Today he implies it’s it good enough as he charges speaking fees in USD. Why the F should people pay to hear you do your job?”