Zimdollar account holders to gain more

Sunday Mail Reporter

\n

Zimbabwe dollar account-holders stand to gain more from the demonetisation formula announced by the Reserve Bank of Zimbabwe, the bank’s governor, Dr John Mangudya has said.

\n

Dr Mangudya told The Sunday Mail in a brief interview last week that Zimdollar bank balances as at December 31 2008 will be divided by the then United Nations US dollar exchange rate, with the minimum payment per account slated at US$5.

\n

“This process is a great improvement from the previously-envisaged one wherein an amount of US$6 million had been anticipated to complete the demonetisation programme.

\n

“This means even those who were going to get nothing after dividing their bank balances by the UN exchange rate would get something now, that is a minimum of USD5.”

\n

Demonetisation means degrading a particular currency or valuable as legal tender.

\n

The process is expected to bring closure to Government’s obligation to bank depositors who became apprehensive after their previous accounts were frozen upon the introduction of the multi-currency system in 2009. In his first 2015 Monetary Policy Statement, Dr Mangudya said about US$20 million was required for demonetisation. He said the funds will start reflecting in accounts by June 30.

\n

“This is critical to buttress the Government’s commitment to the multiple currency system, which the Government is committed to preserve,” he said in the statement.