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Economists have hailed the Reserve Bank of Zimbabwe for introducing bond coins, which were received with mixed feelings when they started circulating yesterday, saying the move will go a long way in easing transactions and restoring good pricing models.Almost all banks were offering the imported bond coins to their clients yesterday, although the coins were yet to reach many people by the end of business.

Shop owners, kombi operators and vendors were accepting the coins, but some people were expressing reservations on their value in an economy that is using multi-currency.

But some people spoken to by The Herald on the streets of Harare were still sceptical of the bond coins, believing that they signified the re-introduction of the local currency.

The RBZ has since allayed fears of the return of the local currency anytime soon, saying it will only be considered when the economic factors allow, with the bond coins being introduced only to help make business transactions smooth.

The coins are in denominations of 1c, 5c, 10c and 25c and there are plans to introduce a 50c coin later.

Rand coins of 10c, 20c, 50c, R1, R2 and R5 worth about R30 million will also be imported to complement the special bond coins.

The bond coins have been issued on a one-to-one equivalence to the US dollar coins and will be interchangeable into US dollars at any bank, shop, supermarket or other business in Zimbabwe.

Economist Mr Gift Mugano said consumers would no longer be forced to buy unbudgeted and unwanted goods.

“The introduction of the bonded coins is a well thought move by monetary authorities which will go a long way in easing transactions,” he said.

Harare-based economist Mr Witness Chinyama said the lack of change had contributed to the overpricing of commodities.

Confederation of Zimbabwe Industries president Mr Charles Msipa said businesses would now price their commodities “accurately without having to round up to the nearest dollar”.

But former banker and economist Mr Joseph Sagwati said the coins could create problems because they had “intrinsic value and zero backing to the national gold reserve”.

“What the authorities are trying to cure are structural supply side issues relating to production incompetency that has cyclically impinged upon our ability to produce for the export and build our reserves,” he said.

 

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