The $10 bank note will commence circulating on Tuesday May 19, 2020, and the $20 bank note will be in circulation by the first week of June 2020,” RBZ governor John Mangudya said in a statement.
This follows the gazetting of the two notes on Thursday evening after reports of the delivery of $600 million worth of new notes from Germany filtered the previous day.
The central bank has also announced new withdrawal limits of $1 000 per person, up from $300 with effect on May 19.
“Banks have been directed to ensure that the withdrawal limits are strictly observed. The (central) bank will not
tolerate any abuse of currency and will decisively deal with any such abuse in terms of the law,” Mangudya said.
The RBZ hopes that the gradual injection of additional notes into the economy would lessen the inconvenience caused by the shortages of physical cash to the transacting public.
As at the end of last year, there was $1,1 billion in circulation, representing 3,2% of total banking sector deposits of $34,5 billion at the time.
The need for the new notes comes as the existing $2 and $5 notes are valueless in real terms, representing US$0,08 and US$0,20, respectively, using the interbank rate.
Finance minister Mthuli Ncube has previously announced plans to introduce a $50 bill this year.
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