Zimbabwe banks advise customers that they will convert US dollar balances to bond notes
Zimbabwe banks are sending amended terms and conditions to their customers.
One letter seen by Zimbabwe today starts… “We treasure our relationship with our customers and place customers at the centre of everything we do. We understand that market conditions can often be challenging….”
Attached to the letter is an updated Terms & Conditionss:
“The withdrawal of funds from the account(s), regardless of the currency of such deposit or the currency of the funds withdrawal request, is not unconditional and may be delayed and subject to…(*this is the best part coming up*)….compulsion by any authority to apply or convert the proceeds of deposits to other asset classes or currencies which may not be freely exchangeable, redeemable, convertible, negotiable or otherwise immediately available for withdrawal by you”.
The Reserve Bank of Zimbabwe has just started the process of reintroducing its own currency, via the form of “bond notes”.
So how is this going to work??
It’s as the bank says… you give us your hard earned currency and we will give you back whatever the government deems an asset class, and don’t worry if that asset is not freely exchangeable, redeemable or convertible.
Yup. This is happening.