The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2014. The coins were supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by Afreximbank (the African Export–Import Bank).[1] To date coins worth US$15 million have been struck out of the total $50 million available. The coins were first issued in denominations of 1, 5, 10, and 25 cents and are pegged to the corresponding values in U.S. dollars.[2] A 50 cents bond coin was released in March 2015.[3]
| Zimbabwean bond coins | |
|---|---|
 | |
| Country |  Zimbabwe |
| Issuers | Reserve Bank of Zimbabwe (2014–2024) |
| Denominations | 1, 5, 10, 25, 50 Cents Bond Coin, 1 Dollar Bond Coin, 2 Dollar Bond Coin |
The coins were issued to remedy a lack of small change resulting from the absence of a solid seigniorage contract with the U.S., South Africa or any of several other countries whose currencies, including the U.S. dollar and the euro, are being used in the multi-currency system that arose in 2009, when Zimbabwe abandoned the Zimbabwean dollar in response to several cycles of hyperinflation. The Zimbabwean economy being too frail and small to pay the interest which would come with a seigniorage contract, the country chose instead to implement a multi-currency environment based on the U.S. dollar. However, this arrangement has meant a shortage of small change in coins.[2][4][5][6]
Public reaction to the bond coins has been extremely skeptical, with widespread fear that they are the government's first step to reintroducing an unreliable Zimbabwean dollar.[5][7] John Mangudya, the Governor of the Reserve Bank of Zimbabwe, had denied that the Zimbabwean dollar was being reintroduced.[citation needed]
The bond coins, struck at the South African Mint in Pretoria,[8] were the first Zimbabwean coins since 2003.
A bimetallic one-dollar bond coin was released on 28 November 2016[9] along with two- and five-dollar Zimbabwean bond notes.[10] A bimetallic two-dollar bond coin was released in 2019, and circulates with its equivalent banknote in circulation.[11]
Coins in Circulation
edit| Denomination | Year | Obverse | Reverse | Weight | Diameter | Material | Ref. |
|---|---|---|---|---|---|---|---|
| 1 Cent Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "1" surrounded by "ONE CENT BOND COIN" | 2.45 g | 17 mm | Copper-plated steel | [12] |
| 5 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "5" surrounded by "FIVE CENTS BOND COIN" | 2.85 g | 18 mm | Brass-plated steel | |
| 10 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "10" surrounded by "TEN CENTS BOND COIN" | 3.80 g | 20 mm | Brass-plated steel | |
| 25 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "25" surrounded by "TWENTY-FIVE CENTS BOND COIN" | 4.80 g | 23 mm | Nickel-plated steel | |
| 50 Cents Bond Coin | 2014 | RBZ in various positions with coin date centered | Enclosed in circle with "50" surrounded by "FIFTY CENTS BOND COIN" | 6.00 g | 25 mm | Nickel-plated steel | |
| 1 Dollar Bond Coin | 2016 | RBZ in various positions with coin date centered | Enclosed in circle with "1$" surrounded by "ONE DOLLAR BOND COIN" | 9.06 g | 28 mm | Brass ring with a nickel-plated steel center plug | |
| 2 Dollars Bond Coin | 2018 | RBZ in various positions with coin date centered | Enclosed in circle with "2$" surrounded by "TWO DOLLAR BOND COIN" | 11.11 g | 28 mm | Cupronickel ring with an Aluminum-bronze center plug |
Bond coins and the RTGS dollar
editIn February 2019, the RBZ Governor, announced that the bond coins would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the Real Time Gross Settlement (RTGS) dollar.[13]
See also
editReferences
edit- ^ "RBZ says bond notes launch Monday". www.new zimbabwe. Archived from the original on 20 March 2018. Retrieved 27 November 2016.
- ^ a b "Zimbabweans suspicious of new 'bond coins'". Times Live. Johannesburg, South Africa: Times Media Group. 22 December 2014. Retrieved 12 January 2015.
- ^ Chawafambira, Kudzai (2014-12-06). "RBZ unveils bond coins". Daily News Live. Harare, Zimbabwe. Archived from the original on 2018-06-27. Retrieved 13 January 2015.
- ^ "Zimbabwe launches new coins to solve change shortage". The Telescope News. 2014-12-24. Archived from the original on 2015-02-11. Retrieved 12 January 2015.
- ^ a b Sanchez, Dana (2015-01-09). "Zimbabweans Suspicious Of New Bond Coins In Circulation". AFK Insider. Retrieved 12 January 2015.
- ^ Hanke, Steve H; Alex KF Kwok (Spring–Summer 2009). "On the Measurement of Zimbabwe's Hyperinflation" (PDF). The Cato Journal. Archived from the original (PDF) on 2009-08-20. Retrieved 2015-02-11.
- ^ "Zimbabweans sceptical of new bond coins". Mail & Guardian. Johannesburg, South Africa: M&G Media. 2014-12-22. Retrieved 12 January 2015.
- ^ "RBZ introduces coins". The Herald. Harare, Zimbabwe. 2014-12-06. Retrieved 14 January 2021.
- ^ "Bond notes finally out". www.herald.co.zw. Retrieved 2019-10-11.
- ^ "Zimbabwe note launch stokes currency fears". BBC News. 28 November 2016. Retrieved 2019-10-11.
- ^ 2 Dollars Bond Coin Numista (https://en.numista.com). Retrieved on 2019-12-12.
- ^ Michael, Thomas (2016). 2017 Standard Catalog of World Coins, 2001-Date. Krause Publications. p. 1392. ISBN 978-1440246555.
- ^ "Monetary Policy Statement - Establishment of an Inter-Bank Foreign Exchange Market to Restore Competitiveness" (PDF). Reserve Bank of Zimbabwe.
External links
edit
| Preceded by: Zimbabwean dollar Reason: hyperinflation Ratio: 250 ZWL = 1 USD Note: 1st dollar (ZWD): 18 April 1980 to 21 August 2006 2nd dollar (ZWN or 1 000 ZWD): 1 August 2006 to 31 December 2008 3rd dollar (ZWR or 1010 ZWN): 1 August 2008 to 12 April 2009 4th dollar (ZWL or 1012 ZWR): 2 February 2009 to 12 April 2009 |
Currency of Zimbabwe 18 December 2014 – present Note: Part of a multiple currency system with hard currencies & Zimbabwean bond notes (28 November 2016 - 2024.) |
Succeeded by: Current |
