Zimbabwe’s apex bank – the Reserve Bank of Zimbabwe (RBZ) has introduced $50 notes, which will come into circulation with effect from tomorrow.
The fiscal authorities have given legal effect to the issuance of the new notes by promulgating Statutory Instrument 196 of 2021.
According to the apex bank, $360 million worth of the new $50 notes will be issued.
Said the RBZ:
“The Bank shall release $360 million through normal banking channels and banks are expected to fund their respective accounts held at the Reserve Bank and collected the cash from 7 July 2021,” reads part of the statement.
In terms of SI-196 of 2021:
“The design of the fifty dollar banknote shall be as follows –
(a) on the front side the dominant feature shall be the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the visually impaired recognition feature to the left, latent image showing the denomination, windowed security strip inscribed “50” with colour shift from red to green, watermark with highlighted inscription “RBZ” and see-through of Zimbabwe Bird looking to the left in perfect register, as secondary features; and
(b) on the back side there shall be an impression of the Tomb of the Unknown Soldier and the motif of Mbuya Nehanda, gold coloured iridescent band showing the denomination of the note and see-through of Zimbabwe Bird looking to the right.”
Notwithstanding concerns by the general public that the issuance of new notes could stoke inflationary pressures, observers say the $50 notes do not add to the country’s reserve money.
According to the Zimbabwe National Statistics Agency, the country’s year on year inflation rate for the month of June 2021 slowed to 106,64 percent from 161,9 percent in May, as both fiscal and monetary initiatives to contain inflation continue to yield positive results.
Latest RBZ data shows that Zimbabwe’s reserve money increased by $602,35 million to $24,45 billion, as at week ending 25th June 2021, from $23,85 billion recorded in the previous week, attributable “increases of $323,06 million and $277,23 million in required reserves and banks’ liquidity (RGTS balances) at the Reserve Bank, respectively.”