Zimbabwe's new bond notes meet doubts, limited relief

The injection of 12 million U.S. dollars worth of bond notes into the economy in Zimbabwe has so far done little to ease the long queues at most banks.

The Reserve Bank of Zimbabwe (RBZ) on Monday released bond coins and notes denominated at equivalents to 1 and 2 U.S. dollars respectively in a bid to improve liquidity in the economy, but interviews by Xinhua reporters in the capital city of Harare found limited relief among the public.

RBZ had stipulated that people could withdraw a maximum of 50 dollars worth of bond notes and coins per day, on top of actual dollar withdrawals as stipulated by banks, but this only worked on the first day as banks failed to cope with the demand.

In many cases, those who come late get nothing as the banks have limited amounts which are withdrawn on a first-come-first-served basis.

A client in Harare's Avondale area, who refused to be named, told Xinhua it was disappointing that even with the coming of the bond notes, things had not improved for him.

"I don't like the 'bonds'. They have been foisted upon us and I promise you I won't keep any of them one minute longer than is necessary. But even then, we are failing to get them and we are made to wait the whole day outside the bank and only a lucky few manage to withdraw them," he said.

The Bankers Association of Zimbabwe (BAZ) this week reported a positive uptake of the bond notes and coins since Monday.

"All banks have witnessed an encouraging uptake of the bond notes since their introduction on Monday," said BAZ president Charity Jinya.

Despite the positive feedback, Xinhua reporters on Thursday saw some people sleeping on the pavement outside one bank in Avondale, with others milling around hoping to be served soon.

Skepticism still surrounds the bond notes. Razor Chitunga, a cashier at a municipal district office questioned whether such notes were secure from counterfeiting.

"I am more comfortable with the swipes (plastic money) than with these bond notes," he said.

At least one government department has also instructed its officers to receipt bond notes and actual U.S. dollars separately "as we wait for guidance from Treasury."

Some members of the public also reported the notes shrink and lose color when exposed to moist conditions, and some genuine notes appear different from each other. Endit