Our mission is to maintain financial stability and financial inclusion through credible policies and risk-based supervision of banks.
History of The Reserve Bank
The Reserve Bank of Zimbabwe has its origins in the Bank of Rhodesia and Nyasaland which was created in March 1956 as a central bank for the Federation of Rhodesia and Nyasaland. The Reserve Bank was the successor to the Central Currency Board, which had the sole right to issue currency.
Originally, the Bank was situated in Vincent (now Mapondera) Building in Harare from where the High Court of Zimbabwe currently operates, and later moved to Bank Chambers at 76 Samora Machel Avenue, in June 1957 as its new headquarters.
Following a rapid growth in its operations and staff complement, the Bank found it necessary to construct its current headquarters complex at 80 Samora Machel Avenue. The building, billed as the most technologically advanced in Zimbabwe, was officially opened by His Excellency, the President of the Republic of Zimbabwe, Robert Gabriel Mugabe, on May 31 1996.
The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides for the Board of Directors and the post of Governor who is responsible for the day-to-day administration and operations of the Bank. The Governor is assisted by two Deputy Governors.
The Governor and his two deputies are appointed by the State President for renewable five-year-terms. The board of directors is chaired by the Governor, and its membership includes a maximum of seven non-executive directors, appointed by the President and representing key sectors of the economy.
Mission: Our mission is to maintain financial stability and financial inclusion through credible policies and risk-based supervision of banks.
The Reserve Bank of Zimbabwe would like to urge members of the public to dismiss, with utmost contempt, claims being circulated on social media regarding the introduction of a new Zimbabwe currency. The country shall continue to use the multi-currency system.
Members of the public should not be misled by such counterproductive fake news.
USE OF VIRTUAL CURRENCIES IN ZIMBABWE
The use of virtual currencies or cryptocurrencies is on the increase both
locally and globally and there are entities that are facilitating the purchase
and sale of virtual currencies in and outside the Zimbabwe. There are
many virtual currencies in circulation, with Bitcoin being one of the most
“Virtual currency” is defined by the Financial Action Task Force (FATF), as
“a digital representation of value, that can be digitally traded and functions
as (1) a medium of exchange; and /or (2) a unit of account; and / or (3) a
store of value, but does not have legal tender status.”
Virtual currency is different from fiat currency (also known as real
currency, real money or national currency) which is the coin and
paper money of a country that is designated as its legal tender. Virtual
currency is also not the same as e-money, which is used to electronically
represent and transfer value denominated in fiat currency.
Virtual currencies are not only unregulated but are also neither issued by
public authority nor guaranteed by the State. In this regard virtual
currencies are not in any way attached to notes and coins circulating in the
country. Virtual currencies do not have legal tender status in Zimbabwe or
in any jurisdiction in the world.
Virtual currencies are attractive to money launderers and other criminals
because of the supposed anonymity and ease with which transactions can
be conducted, on the internet and across borders.
The Reserve Bank of Zimbabwe wishes to advise members of the public
that the use of and trading in cryptocurrencies or virtual currencies is not regulated by the country’s laws and presents risks such as money laundering, terrorism financing, tax evasion and fraud. Under the existing legal and regulatory dispensation, any person who invests in virtual currencies or participates in any transaction involving virtual currencies, does so at own risk and will not have legal protection from, or recourse against, any regulatory authority.
Dr J P Mangudya
CIRCULAR TO BANKING INSTITUTIONS NO. 2/2018: VIRTUAL CURRENCIES
1. Further to the Circular dated 16 November 2015 and Press Statement issued by the
Reserve Bank of Zimbabwe (the Reserve Bank) on 20 December 2017 on the use
of virtual currencies in Zimbabwe, banking institutions’ attention is once again
drawn to the risks involved with virtual currencies and the need to ensure strict
adherence to sound risk management.
2. Our investigations have revealed that the major cryptocurrency exchanges
facilitating the trade of virtual currencies in Zimbabwe are Bitfinance (Private)
Limited (Golix) and Styx24. Golix has gone further to set up an ATM machine
through which cryptocurrency transactions are facilitated.
3. As Monetary Authorities, the Reserve Bank is the custodian of public trust and has
an obligation to safeguard the integrity of payment systems. Cryptocurrencies have
strong linkages and interconnectedness with standard means of payments and
trading applications and rely on much of the same institutional infrastructure that
serves the overall financial system.
4. Financial regulators around the world have identified the dangers and risks
presented by virtual currencies to financial stability which include risk of loss due
to price volatility, theft or fraud, money laundering and other criminal activities.
Further, cryptocurrencies can be used to facilitate tax evasion as well as
externalization of funds in violation of a country’s laws.
5. In order to safeguard the integrity, safety and soundness of the country’s financial
system, and to protect the public in general, all financial institutions are hereby
a. ensure that they do not use, trade, hold and/or transact in any way in virtual
b. ensure that they do not provide banking services to facilitate any person or
entity in dealing with or settling virtual currencies; and
c. exit any existing relationships with virtual currency exchanges within sixty
days of the date of this Circular and proceed to liquidate and restitute existing
6. For the avoidance of doubt, banking services include maintaining accounts,
registering, trading, clearing, collateral arrangements, remittances, payment and
settlement accounts, giving loans against virtual tokens, accepting them as
collateral, opening accounts of exchanges dealing with them and transfer / receipt
of money in accounts relating to purchase/ sale of virtual currencies.
7. Be advised accordingly.
Registrar of Banking Institutions
The Bank dismisses statements circulated on WhatsApp and Facebook that claim the Bank would introduce new bond notes in order to catch off-guard those holding on to huge sums of money from 1 November 2017 in their entirety as false, irresponsible and malicious.
Bond notes have no expiry date and we urge the public to continue to use them.
The 2017 MID-TERM MONETARY POLICY STATEMENT can now be retrieved in it's entirety on the RBZ website.
This Monetary Policy Statement is issued in terms of Section 46 of the Reserve Bank of Zimbabwe Act [Chapter 22:15] which requires the Bank to issue a statement containing an evaluation of the monetary policy of the last preceding six months and a description of the policy measures to be followed by the Bank during the next succeeding six months.
The first half of the year 2017 witnessed a turnaround of the national economy at a time when inflation, underpinned by an expansionary fiscal policy stance, crept out of deflation in February 2017 after two and a half years of a prolonged episode of negative inflation to reach 0.31% in June 2017. The economy is thus expected to grow by 3.7% in 2017 largely driven by agriculture, mining and tourism. Whilst agricultural output is projected to grow by 21.6%, on account of a combination of favourable rainfall season and the positive financial impact of the Presidential and Command agricultural input programmes, the mining and tourism sectors are on the rebound due to stability in the international commodity prices and price competitiveness, respectively.
The favourable agricultural season has a positive spill-over effects on the agro processing industry. This, together with the revival of around 350 firms in the manufacturing sector that are benefiting under the Government’s localisation policy which is supported by Statutory Instrument 64 of 2016 has seen the manufacturing sector enhancing capacity utilization. Some firms in the food processing and packaging sub-sectors are now operating at above 70% of capacity. Prioritisation of foreign exchange allocations by the Bank to these firms continues to greatly assist the localization process and enhancing local production and exports.
To be a transformative and responsive Central Bank.
Our Mission Statement
Maintaining financial stability and financial inclusion through credible policies and risk-based supervision of banks, supported by a skilled human resource base and a modern integrated ICT system.
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