Business - Featured - Finance - Local - February 24, 2021

RBZ warns vendors rejecting ZWL$5 notes

The Reserve Bank of Zimbabwe (RBZ) has warned traders and vendors that if they don’t accept the ZWL$5 note they will have to answer to the Financial Intelligence Unit (FIU).

Just recently the informal market begun rejecting ZWL$5 in favour of the ZWL$10 and ZWL$20 denominations.The informal market is a major determinant in the direction of the economy and it controls the market.

A survey by the BusinessMail has shown that at markets like Jambanja in Chitungwiza and Mbare musika, vendors are now rejecting even the new ZWL$5 notes as vendors argue that they have lost value in the country’s demanding black market.

In a statement, RBZ governor Dr John Mangudya said FIU is investigating cases involving traders who are rejecting $5 notes for payment for good and services.

“Such conduct is not only counterproductive but also criminal. Those affected or inconvenienced by this malpractice should report to the Bank, the FIU or the nearest police station. The Bank urges all traders to conduct their operations within the confines of the law and respect consumers.

The Bank advises that all notes issued by the Bank and in circulation are still legal tender,” he said.

In an interview with BusinessMail, vendor from Chitungwiza, Enos Gapare said it’s just going in cycle because once its rejected by retailers and suppliers, illegal money changers also reject it, vendors also reject and the next person will not accept it because maybe they may want to buy stuff from their suppliers.

“I failed to buy my stuff last week from the supplier after bringing a bunch of ZWL$5 notes as they were rejected at most of the vending stalls so I can’t be accepting money that doesn’t buy from the supplier,” he said.

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