RBZ Advises The Public As Businesses And Farmers Reject Coins

Reserve Bank governor, John Panonetsa Mangudya has said that members of the general public must not panic over the rejection of coins by businesses.

Mangudya said that the development was common cause worldwide whenever there is inflation. He said:

It is common cause throughout the world that high levels of inflation make small denominations uneconomic to use. It is in this context that some businesses now find it bulky to transact in small value coins.

To ensure that the public does not lose value for their money, we are encouraging all businesses and the public to bank their coins so that they do not encounter the inconvenience that they may be facing from conducting business with bulky small denomination coins.

He also said that the coins can be exchanged for bigger denominations at the banks.

Zimbabwe has a cash crisis but the inflation has compelled businesses and farmers to reject 1 cent, 5 cents, 10 cents, 25 cents and 50 cents coins while some are threatening to reject the $1 coin if inflation continues to rise.

Coins amount to $80 million in circulation, $42,7 million of which is in 1 cent, 5 cents, 10 cents, 25 cents and 50 cents.

More: The Herald