The Sunday News
Lungile Tshuma Business Correspondent
FAILURE by retailers to open bank accounts for easy business transaction is impacting negatively on consumers who are still being given sweets as change despite the availability of bond coins.The Reserve Bank of Zimbabwe (RBZ) unveiled a new set of bonded coins worth $10 million, which started circulating on 18 December last year but most retailers have not been able to access the coins from financial institutions as they are not banked with them.
Consumers have been complaining that the change problem has not yet been resolved despite the availability of bond coins on the market and the debate has been on who should take the blame between retailers and banking institutions.
Retailers Association of Zimbabwe (RAZ) Bulawayo charter secretary general Mr Simba Phiri revealed that retailers, especially those that are owned by small entrepreneurs are not banking their earnings, as they prefer to keep their money at home.
“Most retailers are not banking. The normal practice is that every day in the morning one will go and deposit the money to the bank and also ask for change which will also be in form of coins. That is not happening,” said Mr Phiri.
Mr Phiri revealed that since some of the retailers do not have bank accounts, the only place they get bond coins is from big retailers whom they would have bought goods from.
“Hence retailers will rely on other retailers to get bond coins and not from the banks,” he said.
The coins are in denominations of one, five, 10, and 25 cents while the 50c coin will be introduced later. Similarly, rand coins of 10c, 20c, 50c, R1, R2 and R5 worth about R30 million will also be imported to complement the special bond coins.
According to Reserve Bank of Zimbabwe Governor Dr John Mangudya, the initial $10 million coins are equivalent to only two percent of total current bank deposits and would be maintained at below 10 percent. He noted that under normal circumstances, coins in issue should be equivalent to between 20 and 25 percent of total bank deposits.
Responding to questions sent by Sunday Business, Bankers Association of Zimbabwe deputy president Dr Charity Jinya urged customers to demand their change instead of receiving sweets, as bond coins are meant to solve such a bad practice.
“Bond coins are sufficient to solve the problem. The Reserve Bank of Zimbabwe promised to introduce 50c coins in March to provide more convenience to the public.
Customers are therefore advised to demand change in coins instead of sweets,” said Dr Jinya who is also MBCA bank managing director.
She added that: “We advise that any individual or company can access bond coins. Banking practice however is that one should have a bank account from which the coins are withdrawn or deposited into.”
BAZ came out strongly in both print and electronic media in support of the coins, advising the public that they can get bond coins from banks and also exchange bond coins for dollar notes should they so wish.
“BAZ will continue with this campaign in order to build market confidence,” Dr Jinya said.
Consumer Council of Zimbabwe executive director Ms Rosemary Siyachitema said there was a need for re-engagement with various stakeholders to map the way forward so that the circulation of bond coins can be improved.
“With this situation, we need to have a round table with RBZ, wholesalers and retailers, as they are all active players. We will have to discuss the matter and come up with a strong resolution,” she said.
“People (businesspeople) are comfortable with not having change. In the past or normal business practice is that businesspeople go to the bank in the morning to get change.
“More so, businesses might have bought many sweets and they want to get rid of their stocks hence they will rather still give them to people as change. There might be a great possibility that businesses were making more money out of these sweets. With that, we need to have a dialogue so that proper business practices are followed.”
