New ZW$2, ZW$5 notes to be introduced: RBZ

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RESERVE Bank of Zimbabwe (RBZ) announced Tuesday that it will introduce new ZW$2 and ZW$5 dollar notes (Not bond Notes) to increase the amount of physical cash in in the economy to meet transactional demand.

The notes will be an addition to the already circulating bond notes. 

This comes as current proportion of cash to broad money supply of 4 percent is low compared to the regional and international levels of 10 – 15 percent.

This low ratio has resulted in an undesirable cash premium which the RBZ would like to see eliminated.

The Committee felt that there was need to boost the domestic avalability of cash for transactional purposes through a gradual increase in cash supply over the next six months,” RBZ governor John Magudya said after the central bank Monetary Policy Committee met on October 28 and 29 at the bank chambers.

The Committee also noted the need to review upwards the cash withdrawal limits to ease the burden on the transacting public. The additional cash injection will be carried out through the non-inflationary exchange of RTGS money for physical cash.”

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