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Friday, May 29, 2015

Bond coins gain thrust as rand weakens, 29 MAY

The once rejected bond coins have recently turn out to be popular on Zimbabwean markets as the South African rand continues to plunge into deep.
The central bank introduced the first batch of bond coins last year in December as part of efforts to ease the shortage of change.
Bond coins were however rejected as the general populace feared and linked them to the return of the Zimbabwe dollar, which was turned useless by hyper-inflation.
The surprising hyper-inflation level finally forced the Zimbabwe dollar out of circulation in 2009 and until the introduction of bond coins the unforgettable experience was still fresh in people’s minds.
The Zim-dollar ghost was still haunting the people who evidently could not face the return of another local currency.
The introduction of bond coins caused stir amongst service providers and consumers as both parties rejected the coins.
Things have however twisted as the once rejected bond coins have gained momentous recognition.
Bond coins are now the consumer’s favourite, as the South African rand continues to weaken against the US dollar.
The obvious acceptance and preference of bond coins precipitated as a result of the fall in rand value.
In most supermarkets and retail outlets, the 50c bond coin is trading at par with US 50c. 5 rand is no longer equivalent to US 50c / 50c bond. One has to add 1 rand to make it equivalent to US 50c.
This has seen many people opting for the bond coins against South African coins.
The rand has been weakening against the US dollar since 2012
Vince Musewe, an economist, explained to 263Chat why people are now opting for bond coins.
‘People have suddenly realised that this is not their plan to reintroduce the Zimbabwean dollar and they are now receptive of bond coins
He went on to say that bond coins have more value than the South African rand.
“People are aware that bond coins have values which are equal to US cents and that bond coins have a higher value than rand coins. In this view, it is critical that consumers should not be shortchanged by likening rand coins to bond coins,” he said. LINK

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