RBZ pumps in more than US$ 9 million bond coins as Zim agonises over notes

RBZ pumps in more than US$ 9 million bond coins as Zim agonises over notes

Originally posted 2016-11-25 22:25:44.

WHILE the Zimbabwean finance minister, Patirck Chinamasa flip flops on the dates when the much dreaded bond notes will be introduced the Reserve Bank of Zimbabwe (RBZ) has pumped more than $US 6 million worth of bond coins into the economy since last September bringing the total value of coins in circulation to $US 9,4 millionn.

Zimbabwe, which dumped its local currency and adopted a basket of currencies which include the Botswana Pula, South African Rand and US dollar, introduced the coins in 2014 to address a shortage of lower denomination currency.

The special coins denominated in 1c, 5c, 10c, 20c, and 50c, trade at par with the US cents.

According to the central bank data $us3,4 million bond coins were in circulation as at September 2015. By December the coins in circulation had more than doubled to $US7,1 million.

Since the beginning of the year authorities have gradually increased the coins to $9,4 million as at September this year.

Bank data also shows that annual broad money supply (M3) fell by 0.85 percentage points in September from 16.87 percent recorded in August 2016.

On a month on month basis, broad money supply went up 1.78 percent from $US5,2 billion in August 2016 to $US 5,3 billion in September 2016.

Demand deposits and savings grew 33.94 percent and 14.33 percent respectively while over over 30- day deposits increased by 5.53 percent. However, under 30-day deposits went down 20.74 percent.

Credit to the private sector is largely flat $US 3,5 billion. -The Source