Zimbabwean bond notes

Zimbabwean bond notes are a form of banknote in circulation in Zimbabwe. Released by the Reserve Bank of Zimbabwe, the notes were stated to not be a currency in itself but rather legal tender near money pegged equally against the U.S. dollar. In 2014, prior to the release of bond notes, a series of bond coins entered circulation.[1]

Zimbabwean bond notes
A two-dollar bond note
Country Zimbabwe
IssuersReserve Bank of Zimbabwe (2014–present)
Denominations$2, $5, $10, $20, $50, $100

History

In November 2016, backed by a US$200 million loan from the African Export-Import Bank, the Reserve Bank of Zimbabwe began issuing $2 bond notes.[2] Two months later, US$15 million worth of new five-dollar bond notes were also released.[3] Further plans for $10 and $20 bond notes were ruled out by the Reserve Bank's governor John Mangudya.[4]

The notes were not generally accepted by the Zimbabwean people,[5][6] so the government tried expanding the electronic money supply and issuing Treasury bills instead.[5][7]

The bond notes were still in circulation in 2018, although former Finance Minister Tendai Biti said that they should be demonetised, as they were being subject to arbitrage.[8] In the campaigning for the 2018 elections, the bond notes became a political issue, with the MDC Alliance calling for their replacement with 'real cash'.[8]

Despite the notes being notionally pegged to the US dollar, their value, like the former Zimbabwean dollar, is collapsing, with everyday transactions using a rate of $3 bond notes to 1 United States dollar in January 2019 and over $90 bond notes to US$1 as of November 2020.[9] As of August 2022, the conversion rate is $361.9 bond notes to US$1.

Issued notes
Bond notes, 2016 (Signature: John Mangudya, Capital: Harare)
Pick
No.		 Image Value Dimensions Main colour Description Date of[10]
Obverse Reverse Obverse Reverse Watermark printing issue withdrawal
99 $2 155 × 62 mm Green Domboremari with trees Eternal Flame at the National Heroes Acre, and the Old Parliament House Zimbabwe Bird and "RBZ" 2016 28 November 2016 11 November 2019
100 $5 155 × 66 mm Purple Domboremari with trees Three giraffes and the Zimbabwe Aloe (Aloe excelsa) Zimbabwe Bird and "RBZ" 2016 3 February 2017 11 November 2019
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table.

Bond notes and the RTGS dollar

In February 2019, the RBZ Governor announced that the bond notes would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the RTGS dollar along with the bond coins and electronic balances.[11]

See also

References
  1. Staff Reporter. "RBZ says bond notes launch Monday". www.new zimbabwe. Archived from the original on 20 March 2018. Retrieved 27 November 2016.
  2. Crabtree, Justina (28 November 2016). "Zimbabwe's issuing new 'bond notes' to avoid a cash crunch". CNBC. Retrieved 1 May 2017.
  3. Rahman Alfa Shaban, Abdur (3 February 2017). "Zimbabwe introduces fresh $5 bond notes to ease cash crunch". Africa News. Archived from the original on 3 February 2017.
  4. "RBZ rules out $10, $20 bond notes". Daily News. Harare, Zimbabwe. Archived from the original on 5 March 2017.
  5. Southall, Roger Jonathan (2017). "Bond notes, borrowing, and heading for bust: Zimbabwe's persistent crisis". Canadian Journal of African Studies. 51 (3): 389–405. doi:10.1080/00083968.2017.1411285. S2CID 149057942.
  6. "The king of funny money: Zimbabwe's new "bond notes" are falling fast". The Economist. 18 February 2017. Archived from the original on 18 February 2017.
  7. Mhlanga, Fidelity (11 February 2018). "Zimbabwe: Mangudya Failed to Put Cap On RTGs Balances - Experts". The Standard. Archived from the original on 11 February 2018.
  8. "MDC Alliance govt to scrap bond notes". Daily News. Harare, Zimbabwe. 13 March 2018.
  9. "Letter from Africa: Despair, anger and anxiety in Zimbabwe's fuel queues". BBC News. 15 January 2019.
  10. Linzmayer, Owen (24 May 2019), "Zimbabwe", Banknote Book, Virginia Beach, pp. 25–27{{citation}}: CS1 maint: location missing publisher (link)
  11. Staff Reporter (20 February 2019). "RBZ introduces "RTGS Dollars"". The Zimbabwe Mail. Retrieved 20 May 2019.
Zimbabwean multi-currency system
Preceded by:
Zimbabwean dollar
Reason: hyperinflation
Ratio: 250 ZWL = 1 USD
Note: 1st dollar (ZWD): 18 April 1980 to 21 August 2006
2nd dollar (ZWN or 1 000 ZWD): 1 August 2006 to 31 December 2008
3rd dollar (ZWR or 1010 ZWN): 1 August 2008 to 12 April 2009
4th dollar (ZWL or 1012 ZWR): 2 February 2009 to 12 April 2009		 Currency of Zimbabwe
18 December 2014 – present
Note: Part of a multiple currency system with hard currencies & Zimbabwean bond coins (since 28 November 2016)		 Succeeded by:
Current
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