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The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2014. The coins are supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by Afrexim Bank.[1] To date coins worth US$15 million have been struck out of the total fifty million dollars available. The coins are denominated at 1, 5, 10, and 25 cents and are pegged to the corresponding values in United States currency.[2] A 50 cents bond coin was finally released in March 2015.[3]

Zimbabwean bond coins
ZimbabweUSD1.jpg
Country Zimbabwe
IssuersReserve Bank of Zimbabwe (2014–present)
Denominations1, 5, 10, 25, 50 Cents Bond Coin, 1 Dollar Bond Coin

The coins are being 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 US 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, has denied that the Zimbabwean dollar is being reintroduced.[citation needed]

The bond coins, struck at the South African Mint in Pretoria,[citation needed] are the first Zimbabwean coins since 2003.

A bimetallic 1 Dollar bond coin was released on 28 November 2016[8] along with the Zimbabwean bond notes for 2 & 5 U.S. dollars [1].

Contents

Coins in CirculationEdit

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 [9]
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


Bond Coins and the RTGS DollarEdit

In 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 RTGS dollar.[10]

See alsoEdit

ReferencesEdit

  1. ^ Staff Reporter. "RBZ says bond notes launch Monday". www.new zimbabwe. Retrieved 27 November 2016.
  2. ^ a b "Zimbabweans suspicious of new 'bond coins'". Times Live. Johannesburg, South Africa: Times Media Group. 22 December 2014. Retrieved 12 January 2015.
  3. ^ Chawafambira, Kudzai (2014-12-06). "RBZ unveils bond coins". Daily News Live. Harare, Zimbabwe: Associated Newspapers of Zimbabwe (Pvt) Ltd. Retrieved 13 January 2015.
  4. ^ "Zimbabwe launches new coins to solve change shortage". The Telescope News. 2014-12-24. Retrieved 12 January 2015.
  5. ^ a b Sanchez, Dana (2015-01-09). "Zimbabweans Suspicious Of New Bond Coins In Circulation". AFK Insider. Retrieved 12 January 2015.
  6. ^ Hanke, Steve H; Alex KF Kwok (Spring–Summer 2009). "On the Measurement of Zimbabwe's Hyperinflation" (PDF). The Cato Journal.
  7. ^ "Zimbabweans sceptical of new bond coins". Mail & Guardian. Johannesburg, South Africa: M&G Media. 2014-12-22. Retrieved 12 January 2015.
  8. ^ "Bond notes finally out | The Herald". www.herald.co.zw. Retrieved 2017-03-28.
  9. ^ Michael, Thomas (2016). 2017 Standard Catalog of World Coins, 2001-Date. Krause Publications. p. 1392. ISBN 978-1440246555.
  10. ^ "MONETARY POLICY STATEMENT - ESTABLISHMENT OF AN INTER-BANK FOREIGN EXCHANGE MARKET TO RESTORE COMPETITIVENESS" (PDF). Reserve Bank of Zimbabwe.
Zimbabwean multi-currency system
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 (since 28 November 2016.)
Succeeded by:
Current