Zimbabwe Central Bank, which currency employs a multi-foreign currency system after its Zim dollar became unacceptable as legal tender, has introduced new special bonded coins – worth $10 million – to ease the shortage of small change in the country.

Zimbabwe currently uses foreign currencies, particularly the US dollar and South African Rand, after its own currency the Zim Dollar was scrapped in 2009 due to hyperinflation that reached 231 million percent.

However shortage of change, especially small denominations, had become a big problem for ordinary Zimbabweans as businesses were now
rounding-off prices by offering consumers vouchers or candy as change.

In a recent statement, the Zimbabwe central bank Governor, John Mangudya, said the introduction of special bonded coins in small denominations like 10c, 20c and 50c will bring harmony to the country’s businesses. particularly supermarkets and hypermarkets, as small change had become a headache.

“The economics of the bond coins is that they are being introduced to buttress the multiple currency system through the provision of change
especially for the US dollar notes which have a smallest denomination in circulation in Zimbabwe of US$1,” said Mangudy. “The bond coins would be at par with the US cents that  is  trading one for one with US cents. This is necessary to complete the divisibility series of the dollar for the benefit of both consumers and businesses”.

But there were mixed reactions from ordinary Zimbabweans and economic analysts over the introduction of the special coins with some saying
the government might be planning to bring back the worthless ZimDollar through its latest introduction.

By George Mpofu