Foreign notes, coins in banks decline

Foreign notes, coins in banks decline

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THE amount of foreign notes and coins in the commercial banking system slumped to $679,3 million during the year to December 31, 2017, from $1,3 billion at the close of 2016, central bank data has revealed.
In its monthly report for December 2017, the Reserve Bank of Zimbabwe (RBZ) noted that foreign notes and coins continued to disappear from the formal system as Zimbabwe’s foreign currency shortages and cash challenges persisted.

Read full story in The Financial Gazette paper

  • nelson moyo

    Sir Thomas Gresham’s ( 1519-1579) law of currency is being tested in Zimbabwe :–
    Gresham’s law states that any circulating currency consisting of both “good” and “bad” money (both forms required to be accepted at equal value under legal tender law) quickly becomes dominated by the “bad” money. This is because people spending money will hand over the “bad” money rather than the “good” ones, keeping the “good” ones for themselves. Therefore the bad money (bond notes) will drive out the good money(US dollars) and a US dollar will become extinct inside Zimbabwe.
    To summarise – In Zimbabwe a US dollar and a ZW Bond note are equal value according to the Reserve Bank of Zimbabwe and Doctor John ‘Bond’ Mangudya.
    The market place of Zimbabwe and the world are presently being tested to see if GRESHAMS LAW of CURRENCY is still valid after 400 years as more new bond notes arrive on the scene in 2017
    Which would you prefer a USD or a bond note today – Is Gresham correct ? students of economics please give us your thoughts on this famous man

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