Zimbabwe: Coins, Coins Everywhere, But
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 Published by the government of Zimbabwe |
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The Herald (Harare)
EDITORIAL
8 August 2008
Posted to the web 8 August 2008
Harare
IT is now more than a week since Reserve Bank Governor Dr Gideon Gono presented his 2008 Mid-Term Monetary Policy Statement, which saw the introduction of a new family of banknotes in $1, $5, $10, $20, $100 and $500 denominations.
The newly-introduced Zimbabwe dollar which came into circulation on August 1 is now less 10 zeros.
The RBZ also announced the reintroduction of old coins (10 cents, 20 cents, 50 cents, $1, $2 and $5) at their face value, and the introduction of new coins worth $10 and $25.
The new currency is working concurrently with the bearer and special agro-cheques, which will be phased out in December.
In addition, the central bank increased the cash withdrawal limit from $100 billion (old currency to $200 in the new currency.
As recommended by the National Incomes and Pricing Commission, businesses were required to show the prices of goods and services using both the new and old currency for the convenience of the shopping public.
When the reforms where announced, the monetary system was already seriously challenged with cash shortages and incessant price hikes. It is every Zimbabwean's hope that these reforms are the foundation for economic recovery.
The return of the coins: boon or problems?
The reintroduction of old coins into the monetary system continues to be a source of both excitement and frustration, considering that coins were last used in 2003.
Since last week, cartoonists have had a field day with the coins.
Those who had kept the coins, for "posterity" suddenly found themselves with a lot of money at their disposal, enabling them to purchase a variety of goods and services.
One family was seen buying a brand new lounge suite with the old coins.
Since last Friday, some businesses - bottle stores especially - have been enjoying roaring business with buyers paying with the old coins.
In this regard, their revaluation has been of more importance than just the public's convenience.
The impact of the "coin craze" was also evident when dumpsites in most urban centres became instant treasure troves, resembling Chiadzwa as people were digging around looking for the precious coins.
However, not all has been rosy.
Some service providers have been rejecting the coins as legal tender. These range from commuter omnibus operators, shop owners in some high-density suburbs, vegetable vendors, tuckshops to retail shops in the central business district owned mostly by foreigners.
Since last Saturday, this writer has had problems accessing goods and services worth $100 made up of 10 cent coins as some retailers did not want to handle the smaller denomination coins.
Initially, service providers were sceptical about the legality of the old coins. Afterwards, they seemed overwhelmed with the huge amounts of coins they had to deal with for each transaction.
Shop assistants in one shop in Mufakose last Sunday said that they were no longer accepting coins arguing that it was cumbersome to count the money and balance their books at the close of business.
Commodities such as cooking oil, mealie-meal and soap could only be bought with notes while on Tuesday some commuter omnibus conductors were saying they had been instructed by their bosses not to accept coins.
It is surprising that there are sometimes police details on board the buses when the coins are rejected but they do not enforce the law and protect the citizenry as they are supposed to do.
Worryingly, the re-introduction of the old coins saw sharp increases in prices with the cost of goods in some cases doubling, trebling or even quadrupling when one was transacting in coins.
There are no economic fundamentals at work here: it is pure greed, plain and simple.
The Chronicle newspaper reported that the re-introduction of old coins caused a lot of confusion among residents of Tsholotsho who thought that the coins would be used in exchange for the new currency.
The knee-jerk reaction to coins is difficult to understand. Some people argue that the central bank did not adequately prepare the people before introducing such a radical system and a longer public education campaign was needed.
Read comments. Write your own.
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