Zim bank begins importing SA rand coins

In a public notice issued on Tuesday, 20 July 2010, CBZ Bank said it had begun issuing to retailers the rand coins at its branches countrywide.

"Need some change? We can help. CBZ Bank is offering South African rand coins, R1, R2, R5 in exchange for South African bank notes at a rate of 1 to 1 or United States dollars at the rate of the day," the public notice said.

Shortage of low denomination coins

Zimbabwe's retailers have been battling to deal with shortage of low denomination coins, and have devised a voucher system for change of less than US$1 on transactions. Public transport operators are using specially packaged Z$50 billion bills, despite the fact they are no longer officially in use.

In his budget statement last week, Finance Minister Tendai Biti said government would facilitate the importation of smaller denomination coins from outside the country to deal with challenges created by the ditching of the domestic currency in favour of a multicurrency regime dominated largely by the US dollar and the South African rand.

It was not clear if the CBZ Bank move was part of treasury's planned programme and how the CBZ Bank was benefitting from the initiative as its rate for purchase of rand coins provided for no profit.