Yes you are right Governor; we don’t need to fret about coins!
Share on facebook
Share on google
Share on twitter
Share on linkedin
December 17, 2019
We woke up to an article in the Herald today, where the RBZ governor was telling us not to fret over the rejection of coins in certain sectors of the economy. Apparently the informal sector and some retailers are not accepting some coins especially those under ZWL1. This is hardly surprising as the coins, individually buy just about nothing!
As usual, the governor had a solution; we should just take these to our banks! You go and queue to deposit these and then hope to be given higher denomination coins/notes. The point is we do not need any of these coins at all. If anything we need higher denomination notes. Implied annual inflation is just under 500% and our biggest note is $5. You need about 4 of those to buy a loaf of bread or a litre of diesel. So yes, you are right Doc Governor – we need not worry about those coins – we DON’T need them!
We are a team of independent analysts whose primary focus is research into the Zimbabwean parallel markets as well as the stock market. We strive to bring you the most accurate rates in the market and our independence means we have no bias on these rates. You need to make your business decisions and we strive to be your best source of information.
As Market Watch we do not deal in the parallel market nor do we quote on behalf of any other person or company. We are not traders and cannot be accountable for any decisions you make around our data. We are researchers only so please do not assume our information is accurate. Our information comes from various sources including social media as well as market informants on the street. For official USD and RTGS rates please consult your banking partner or the Reserve bank of Zimbabwe. Please note it is illegal to deal on the parallel market and we strongly advise against it. Our platform documents the rumoured parallel market that is mentioned on social media and various other sources.
The ‘Old Mutual Implied Rate’ is a comparison between the Old Mutual share price on the London stock exchange / the Johannesburg stock exchange and the Zimbabwe stock exchange. Effectively RTGS is valued at 1:1 with the USD, but this difference in share price gives us the implied countries exchange rate.
Real-time gross settlement systems (RTGS) is a funds transfer system where money transfer takes place from one bank to another on a “real time” basis and “gross” basis. Settlement in the “real time” means that the transaction happens almost immediately.
The Zimbabwe Bond Note is a surrogate currency issued by the Reserve Bank of Zimbabwe. This was originally issued against a loan facility from the African Export-Import Bank. The Bond Note is officially 1:1 however the market seems to have significantly discounted the value of the Bond Note.
The symbol ZAR is the currency abbreviation for the South African rand.