When was the last time you stumbled across a US$100 note in Zimbabwe?
Times are hard and that’s a fact, but when was the last time you saw it even from a bank teller, a friend or someone else buying off a supermarket. The reality of the matter is that the $100 is gone and we want to know where its going.
Its note just the $100, but the $50 too, and admittedly here and there ,i still do come across the $50 note.
Fears are that banks through the RBZ could be sweeping all the big notes from the circulation as the central banks frantically fights to replenish the empty nostro accounts they never explained how they were emptied.
While the RBZ was quick to introduce the $5 note which was meant to come in later on, one could be forgiven to think that the bank is actually mopping up all the green backs and replacing them with bond notes.
The bond notes have become so common that they lead every transaction with very little US dollar settling local transactions, a move which certainly raised our eye brows.
One local publication had a headline bragging that 80% of a supermarket deposit was all bond notes. Investigations by #MondayBlues across the banking sector proved that customers are withdrawing less than 20% of the US dollar while 80% has become bond note.
Our fears are coming true that the government introduced the bond note to completely buy out the US dollars and may soon convert all accounts to Zim dollars of a rate they suggest,
The RBZ purportedly said its only introducing 5% in bond notes to thank and stimulate the exporters as an incentive, lol and behold we are all being thanked for having something in our nostro accounts, as banks continue to dish put bond notes in place for US dollar.
The move has been seen as the formal channel by RBZ to buy out all circulating US dollars and replace them with bond notes, which will soon mean that we become a fully bond note economy.
The government has seen the artificial acceptance of bond notes , due to lack of alternative as a general national acceptance of the surrogate currency, which is factually incorrect.
However economically, this will have long term effects as we are slowly endorsing a currency which has no backing and continue to use the nostro based bond notes.
Every time when heading towards national elections, we have a serious financial problems meaning the RBZ gets involved in quasi business which risks the financial status of the nation.
The move may still be repeated this year, likely to leave real money disappearing, as RBZ continues to fail to replenish the nostro, which in the beginning was fully funded with foreign currency.