Zimbabwean bond coins

Zimbabwean bond coins
Country Zimbabwe
IssuersReserve Bank of Zimbabwe (2014–2024)
Denominations1, 5, 10, 25, 50 Cents Bond Coin, 1 Dollar Bond Coin, 2 Dollar Bond Coin

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]

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]

  1. ^ "RBZ says bond notes launch Monday". www.new zimbabwe. Archived from the original on 20 March 2018. 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. Archived from the original on 2018-06-27. Retrieved 13 January 2015.
  4. ^ "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.
  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. Archived from the original (PDF) on 2009-08-20. Retrieved 2015-02-11.
  7. ^ "Zimbabweans sceptical of new bond coins". Mail & Guardian. Johannesburg, South Africa: M&G Media. 2014-12-22. Retrieved 12 January 2015.
  8. ^ "RBZ introduces coins". The Herald. Harare, Zimbabwe. 2014-12-06. Retrieved 14 January 2021.
  9. ^ "Bond notes finally out". www.herald.co.zw. Retrieved 2019-10-11.
  10. ^ "Zimbabwe note launch stokes currency fears". BBC News. 28 November 2016. Retrieved 2019-10-11.
  11. ^ 2 Dollars Bond Coin Numista (https://en.numista.com). Retrieved on 2019-12-12.