The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe, founded in March 1956 and headquartered in Harare, the capital of Zimbabwe.

History

See: History of Zimbabwe

The predecessor of the Reserve Bank of Zimbabwe was the Bank of Rhodesia and Nyasaland, established in March 1956. Later, although Zimbabwe experienced a series of changes in sovereignty and government structure during its transition from colony to independence, the Reserve Bank's business and staff continued to grow.

Construction of the Reserve Bank of Zimbabwe headquarters building began in 1993, designed to be 394 feet above the ground and have a total of 28 floors. Originally scheduled to be completed in 1997, it was opened by President Robert Mugabe on May 31, 1996.

The Reserve Bank of Zimbabwe issued the 100 trillion New Zimbabwe dollar banknote in January 2009

By 2000, the national government began land reform, causing a large number of white farmers to flee the country and the domestic economy was thrown into chaos. Then in 2002, due to the country's long-standing foreign debt and the government's inability to implement economic stabilization measures, the international monetary fund suspended economic assistance to Zimbabwe, and the government responded by printing a large number of new money to fill the fiscal deficit, which led to severe inflation and a sharp depreciation of the currency. By November 2007, Zimbabwe's official inflation rate was as high as 26,000%, and then in February 2008, the inflation rate reached 165,000%; in June 2008, the inflation rate reached 200,000%, and the Reserve Bank of Zimbabwe issued Zimbabwean banknotes with a face value of 10 billion yuan in July 2008; in August of the same year, the government crossed 10 zeros from the currency and issued a new currency, declaring that the 10 billion Zimbabwe dollar is equivalent to 1 new Zimbabwe dollar. However, inflation continued to deteriorate, and soon after, on January 16, 2009, the Reserve Bank issued a 100 trillion denomination of the New Zimbabwean dollar.

On April 12, 2009, the government announced that it would stop using the national currency for one year in view of the inability to maintain the currency value of the Zimbabwean dollar, and switched to the US dollar and the South African rand as legal tender, and later accepted the Botswana pula, British pound and the euro. And in February 2014, the governor of the Reserve Bank announced that it would accept the RMB, Indian rupee, Japanese yen, and Australian dollar as domestic legal tender.

In mid-June 2015, the governor of the Reserve Bank, Mangutya, announced that he would cancel the legal tender status of the Zimbabwean dollar. From June 15 to September 30, 2015, the people of the whole country are allowed to exchange the remaining Zimbabwean yuan without handling fees. The specific exchange is divided into two types: bank account Zimbabwean balance exchange and Zimbabwean yuan cash exchange. Those who deposit 0 Zimbabwean yuan to 175 quadrillion Zimbabwean yuan in their bank accounts can get 5 US dollars; this 5 US dollars is used as compensation for the circulation of various foreign currencies that no longer circulates Zimbabwean yuan in China after 2009. As for those with bank balances of 175 quadrillion Zimbabwean yuan or more, they will be exchanged for currency at a rate of 1 US dollar per 35 quadrillion Zimbabwean yuan. The new currency deposits after currency adjustment in 2009 will be exchanged at the exchange rate of 35,000 Zimbabwean yuan to 1 US dollar. In addition, holders of Zimbabwean dollar cash can exchange their remaining Zimbabwean dollar banknotes in commercial banks, building societies and post offices within the time limit. The 2008 version of the old Zimbabwean dollar banknote is exchanged at the exchange rate of 250 trillion Zimbabwe dollar to 1 US dollar, and the 2009 version of the new Zimbabwean dollar banknote is exchanged at the exchange rate of 250 Zimbabwe dollar to 1 US dollar. Individual converters with a total amount of 50 US dollars and less after conversion will receive cash; those with more than 50 US dollars and corporate customers will be deposited into their bank accounts. According to reports, some people in the country have angrily criticized the central bank's move as "abuse of the power of the banking system".

Organizational Structure

The Reserve Bank of Zimbabwe Act of 1964 stipulates the division of powers between the board of directors and the president of the bank. The board of directors is chaired ex officio by the president, and its work is assisted by two vice presidents who are ex officio directors. The board of directors can have up to seven directors in addition to the president, and the directors are also appointed by the president.

Both the president and the vice president of the Reserve Bank are appointed by the president for a five-year term.