Zimbabwe To Soon Take Delivery Of Special Coins Worth $20 Million

Zimbabwe all set to take delivery of special coins worth $20 million in November, but the Reserve Bank of Zimbabwe (RBZ) has been fast to discharge the arrival of the local currency, rendered worthless five years ago. 

The country abandoned its currency in favour of foreign currencies in January 2009 after hyper-inflation touched 500 billion percent. Zimbabwe largely practices the U.S. dollar and South African rand for deals but businesses typically round-off prices and provide consumers vouchers or sweets as conversion because the nation has shortage of coins.

New central bank governor, John Mangudya is of the opinion that the accessibility of the coins will head to a decline in prices of commodities, as they had been initially priced with the lack of coins in mind.

"We will get $20 million special coins in November," he announced.

"We will also get $25 million in rand coins, which we expect to be in the country earlier than the special coins, as they have to be made specifically for us. We will get the coins from South Africa. The minting of the special coins will be done in that country as well.

"They are not Zimbabwean coins, we don't want to bring back the Zimbabwean dollar due to confidence issues."

Mangudya said RBZ would be introducing special coins of 1c, 5c, 10c, 20c, and 50c whose values would be at par with the US cents.

Rand coins of 10c, 20c, 50c, R1, R2 and R5 are also being imported to support the manifold currency system which is conquered by the US$ and rand. The forthcoming introduction of the special coins had elevated fears that government wanted to return the banished Zimbabwe dollar to substitute the multi-currency regime.

In recent times, the central bank issued a $50 million bond to raise money to import "special" coins equal in value to U.S. currency.

Preceding efforts to have the coins failed as the central bank failed to import U.S. coins in the past for the reason that freight charges were higher than their value.

RBZ has not stated the footings of the bond or where the coins would be imported from.