Banknotes of Zimbabwe

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The banknotes of Zimbabwe were first issued in 1980 after the colony of Rhodesia became independent within the Commonwealth of Nations as the Republic of Zimbabwe. The Reserve Bank of Zimbabwe took over the functions of the Reserve Bank of Rhodesia, and the Rhodesian dollar was withdrawn and replaced by the Zimbabwean dollar. There are 100 cents in one Zimbabwean dollar, but nobody uses cents in Zimbabwe anymore.

Contents

[edit] Coins, banknotes, bearer cheques and traveler's cheques

[edit] Coins

Coins were issued since 1980 in denominations of 1, 5, 10, 20, and 50 cents as well as ZWD 1, 2, and 5. (click for image) They remain legal tender, but, due to their minuscule value, they function as gambling tokens in Zimbabwean casinos.

Plans, by the Reserve Bank of Zimbabwe, for new Z$5,000 and Z$10,000 coins were announced in June 2005 (click for story). No sign has been seen of these coins as of mid 2006.

[edit] Banknotes

(1980-94) Design 1 These issues come in the following denominations: ZWD 2, ZWD 5, ZWD 10, and ZWD 20.

The 1980 issue gives the capital's name as Salisbury, whereas, the issues from 1982 onwards gives the name of the capital as Harare. However, some notes were printed in 1982 with the name 'Salisbury'. These are very difficult to find, and Commonwealth of Nations banknote collectors are always interested in these notes.

(1994-2003) Design 2 After 1990, the Zimbabwean economy began its decline, so a new issue was put into circulation. The denominations in these issues are: ZWD 5, ZWD 10, ZWD 20, ZWD 50, ZWD 100, ZWD 500, and ZWD 1000.


Zimbabwe Banknotes have been issued in denominations of:

Denomination Years Issued Design 1 Design 2
ZWD 2* 1980 to 1994 click for image -
ZWD 5* 1980 to 1997 click for image click for image
ZWD 10* 1980 to 1997 click for image click for image
ZWD 20* 1980 to 1997 click for image click for image
ZWD 50* 1991 - click for image
ZWD 100* 1992 - click for image
ZWD 500** 2001 - click for image
ZWD 1,000** 2003 - click for image

*Banknotes no longer in circulation **Banknotes removed by Operation Sunrise

The $500 note was introduced in 2001, however, it comes in two colours, even though they were issued in 2001. One of the notes has a fluorescent security strip up the left hand side of the note. The $1,000 note was introduced during 2003. The $500 note remains the smallest banknote in circulation, as the lower values were driven out of circulation by the rampant inflation.

The government, however, has issued bearer cheques in larger denominations to offset the money shortage.

[edit] Bearer cheques and traveler's cheques

[edit] Cargill Cotton bearer cheques 2003

In May 2003, a private company, the Cargill Cotton Group, issued bearer cheques from its 85 Robert Mugabe Road branch for ZWD 5,000 and ZWD 10,000. These were valid for a period of six months. By the end of 2003, 85% of them had been redeemed. (These are regarded as authorised issues by the RBZ.)

These are very difficult to find.

Type Inscribed ZWD 5,000 cheques - date issued ZWD 10,000 cheques - date issued
1 Pay to order of Bearer - 01/05/03 (May 1, 2003)
2 Pay to Bearer 01/06/03 (June 1, 2003) 01/05/03 (May 1, 2003)
3 Pay to Bearer 01/09/03 (Sept 1, 2003) 01/09/03 (Sept 1, 2003)

[edit] RBZ Traveller's Cheques 2003

Zimbabwe's central bank, the Reserve Bank of Zimbabwe (RBZ), followed a few months later with a series of traveler's cheques in the following denominations: ZWD 1,000; ZWD 5,000; ZWD 10,000; ZWD 20,000; ZWD 50,000 and ZWD 100,000. These proved unpopular with the general public due to the need to produce ID both during issue and encashment of these, and also because of the obvious limited usage, since they can only be used once by the bearer.

The commercial banks levied a commission on all traveller's cheques, including the ones issued by the Reserve Bank of Zimbabwe. These are quite difficult to find.

Example of RBZ Traveller's Cheque Design:

Denomination Obverse Design Reverse Design
ZWD 20,000 click for image click for image

[edit] RBZ Bearer Cheques 2003-5 (ZWD 5,000; ZWD 10,000 and ZWD 20,000)

Beginning in September 2003, the RBZ issued bearer cheques in the values of ZWD 5,000; ZWD 10,000 and ZWD 20,000 on old ZWD 50 banknote stock. These bearer cheques were supposed to have a limited period of validity and have an expiry date. This rule is not applied, however, and all bearer cheques remain valid.

They were finally demonitized 2006 Aug 21.


These were very difficult to find, as very few people are visiting Zimbabwe. However, recently, examples have been showing up on eBay.

Note on RBZ Bearer Cheques Emergency Banknotes (2004-)

On 7 December 2003, the Zimbabwean dictator, Robert Mugabe issued a decree announcing that Zimbabwe was withdrawing from the Commonwealth of Nations in protest at international condemnation of the ZANU-PF regime's policies. Although the bearer cheques issued after this date are technically not Commonwealth of Nations issues, they are included here.

[edit] RBZ Bearer Cheques 2006 (ZWD 50,000; ZWD 100,000 and ZWD 1 million)

On 3 January 2006 the expiry date of all RBZ Bearer Cheques was once again extended. The new expiry date was 30 June 2006. On 1 February 2006 a ZWD 50,000 RBZ bearer cheque was issued. Expiry date was 31 December 2006. On 1 June 2006 a ZWD 100,000 RBZ bearer check was issued. At the time of its issue, this new Bearer Cheque was insufficient to purchase a loaf of bread. [1] In mid June, it was announced that the Zimbabwe Reserve Bank plans to introduce a $1 million bearer cheque in September. (It was never issued) In mid July 2006, the RBZ announced that validity of all RBC bearer cheques had been extended to 31 December 2006. However, they were demonitized on 21 August 2006.

[edit] Revaluation and new RBZ Bearer Cheques - August 2006

On 1 August 2006, the Zimbabwe dollar was revalued. 1000 old Zim dollars = 1 (revalued) Zim dollar. New RBZ Bearer Cheques were issued. People only had 3 weeks to change their old money.

The new bearer cheques are in the following denominations, one cent, five cents, 10 cents and 50 cents, one dollar, $10, $20, $50, $100, $500, $1,000 , $10,000 and $100,000 ($100 million old dollars).

Type Issue Date Expiry Date Signed By Watermark Denominations
1 15 September 2003 31 January 2004 Acting Governor No RBZ wmk ZWD 5,000, 10,000 and 20,000
2 15 September 2003 30 June 2004 Acting Governor No RBZ wmk ZWD 5,000, 10,000 and 20,000
3 1 December 2003 31 December 2004 Governor No RBZ wmk only ZWD 20,000 seen
4 1 December 2003 31 December 2004 Governor RBZ wmk ZWD 5,000, 10,000 and 20,000
5 1 December 2003 31 December 2004 Dr. G. Gono, Governor RBZ wmk ZWD 5,000, 10,000 and 20,000
6 1 December 2003 31 December 2005 Dr. G. Gono, Governor RBZ wmk ZWD 5,000, 10,000 and 20,000
7 1 February 2006 31 December 2006 Dr. G. Gono, Governor RBZ wmk ZWD 50,000
8 1 June 2006 31 December 2006 Dr. G. Gono, Governor RBZ wmk ZWD 100,000
9 1 August 2006 31 December 2007 Dr. G. Gono, Governor RBZ wmk revalued Zim dollars 1 ct, 5 cts, 10 cts and 50 cts, $1, $10, $20, $50, $100, $500, $1,000 , $10,000 and $100,000 ($100 million old dollars).

Examples of RBZ bearer cheque designs:

Denomination Bearer Cheque Design
ZWD 5,000 click for image
ZWD 10,000 front back
ZWD 20,000 front back
ZWD 50,000 front back
ZWD 100,000 front back
Aug 2006 notes

1 2 3

[edit] Cargill Cotton bearer cheques 2004

In April 2004, the Cargill Cotton Group issued bearer cheques again. The address of the issuing office is now given as 85 R. Mugabe Rd., Harare. These were denominated ZWD 10,000, ZWD 20,000, ZWD 50,000 and ZWD 100,000.

[edit] Other bearer cheques

Other companies issued bearer cheques in rural districts of Zimbabwe. (These are not regarded as authorised issues by the RBZ.)

[edit] Current situation

The Reserve Bank of Zimbabwe claimed that inflation was 1,204.6% (as of August 2006). In reality, some economists are saying that it could reach 2000% this year. The official exchange rate (ZWD 250 per USD) is doing little to help the rapid currency devaluation. The parallel rate is about revalued ZWD 650 to 800 per USD (10 September 2006).

On 1 February 2006 bearer cheques with a denomination of ZWD 50,000 were issued (then worth about 50c US - official rate, 30c US - parallel rate)(expiry date was 31 December 2006). It is printed in purple and features an image of Victoria Falls on the reverse side. On 01 Jun 2006 the RBZ issued a ZWD 100,000 bearer cheque (then worth about $1 US - official rate, 33c US - parallel rate) (expiry date was 31 Dec 2006). It is printed in green and features an image of Victoria Falls on the reverse side. In mid June 2006 the RBZ announced that a ZWD 1 million bearer cheque was planned for issue in Sept 2006. It was never issued. In mid July 2006 the RBZ announced that validity of all RBZ bearer cheques had been extended to 31 December 2006. This later changed and they were all demonitized as of 21 August 2006.

On 1 August 2006, the Zimbabwean dollar was revalued. 1000 old Zimbabwean dollars = 1 revalued Zimbabwean dollar. Thirteen new RBZ Bearer Cheques were issued (Expiry: 31 December 2007). People only had three weeks to change their old money before it was demonitized on 21 August 2006.

[edit] New Series of RBZ Bearer Cheques

Under Gideon Gono's Operation Sunrise, the reserve bank of Zimbabwe issued 13 new bearer cheques which were released on 1 August 2006 and became the sole currency of the country on 21 August 2006. These redenominated notes were exchanged for the existing bearer cheques at a rate of $1 new = $1,000 old. The change over process was both rapid and disorganized. There were many claims of illegal government actions, and an equal number of claims of cash hoarding and parallel market activity. The smallest note is the 1 cent (or $0.00005 US at the official rate). The other notes are the $.05, $.10, $.50, $1, $10, $20, $50, $100 (old largest bill), $500 (about $2 US at the official rate), $1,000, $10,000, and $100,000. All of the notes are of very similar design.

[edit] See also

[edit] References

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