New $10 notes now in circulation

A number of banks yesterday started the provision of new $10 notes to customers queuing for cash.However, other banks said they would start issuing them today.

The new redish $10 notes were put into circulation by the Reserve Bank of Zimbabwe(RBZ), whilst the new blue-grey$20 notes are set to start circulating in public in the 1st week of June.

Weekly cash withdrawal limits have increased to $1 000 from today.

Zimbabwe’s business has been largely characterised by the use of electronic money and the formal sector have embraced the use of debit cards or mobile money transfers for a while now, are likely to be negatively or positively affected by the coming in of the new notes , even in the informal sector fruit and vegetable vendors had adopted too using mobile money and they are constantly heard advertising their Ecocash number for mobile transactions.

Currently some micro-businesses are offering low prices for cash, and the increased quantity of cash in circulation is likely to reduce the discount given for banknotes, with all prices tending to come close to the digital money prices. It was too early yesterday to see what effect the extra cash in circulation was having on the market.

Most people do need cash for bus fare, although Zupco has introduced tap cards and there is no difference between cash and tap fares.

The Covid-19-induced national lockdown, which has been extended indefinitely, has made it difficult for people to access new Zupco tap cards, although those with such cards can prepay them at some retail and other shops.

With independent commuter omnibuses suspended from operating, only Zupco buses and contracted transporters allowed to offer public transport, it is likely that cash fares will in the end, be replaced by tap cards.

However, pirate operators, the mushikashika and private motorists offering lifts still demand cash.

Availability of banknotes should see the premiums demanded by sellers of cash for mobile transfers dropping, as supply increases to meet demand.