Police have confirmed the arrest of two Salvation Army Church pastors in Kadoma for tearing $50 Zimbabwe dollar banknotes during a church service.
In a post on the Zimbabwe Republic Police (ZRP) Twitter page, police said Felix Tengemhare (62) a Major in the church, and his wife Benina Tengemhare, who is a Captain, tore nineteen (19) ZWL$50 during the service leading to their arrest. Police said:
<blockquote>
Police in Kadoma have arrested the head and Major of Salvation Army in Rimuka, Felix Tengemhare (62) and his wife, Benina Tengemhare, who is a Captain in the church, for tearing nineteen ZWL$50 notes during a church service on 08/01/23.
</blockquote>
Police, however, have not revealed why the clerics ripped the banknotes in church.
According to Section 42 of the Reserve Bank Act Chapter 22:15, “Any person who… wilfully defaces, soils or damages any banknote or writes or places any drawing thereon or attaches thereto anything in the nature of an advertisement… shall be guilty of an offence…”.
Anyone found guilty is liable to imprisonment for a period not exceeding seven years.

Pindula News

Salvation Army Church Pastors Tear $50 Banknotes During Service

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has advised that all banknotes that have been issued by the central bank remain legal tender, following the rejection of smaller denomination notes by some businesses.
Reports indicate that most transport operators and shops in Bulawayo are now rejecting the ZW$20 notes, while ZW$5 and ZW$10 have since been rejected by the transacting public.
Responding to questions from  Sunday News Business, Mangudya said all the bank notes remain legal tender in the country. He said:
<blockquote>
While we are not privy to that predicament raised, it is important to advise that all the bank notes that we issued remain legal tender which can be deposited at banks and banks can bank the same at the RBZ under the normal banking process.
</blockquote>
Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu urged businesses to accept the $20 banknotes to avoid inconveniencing the public. Mutashu said;
<blockquote>
We encourage businesses to accept all notes including the ZW$20 notes and not inconvenience the transacting public.
Rejection of particular denominations is usually synonymous with high inflation as currency value erodes, unfortunately, it is only in our environment that economic agencies decide to reject notes.
In Malawi, Zambia, South Africa and other jurisdictions, even the smallest of the denominations like coins are accepted at the point of transacting.
</blockquote>

$5, $10, $20 Notes Still Legal Tender - Mangudya

Kombi crews and most shops in Bulawayo are reportedly now rejecting the $20 bill although it is still legal tender in the country.
However, big retail outlets such as OK Zimbabwe, PicknPay, Choppies, and Sai Mart, as well as Government departments are still accepting $20 banknotes.
Kombi crews argue that illegal foreign currency dealers whom they buy forex for fuel and other accessories from, for their fleets are no longer accepting the note.
A shop attendant at a takeaway shop at the corner of Fife Street and 9th Avenue told the <a href="https://www.chronicle.co.zw/businesses-reject-legal-tender-in-bulawayo/">Chronicle</a> that their employer gives them Zimbabwe dollars to use as transport money. She said:
<blockquote>
Kombis are rejecting the $20 note so if we accept it here we will be doing ourselves a disservice because it’s the same money that the employer will give us as transport hence our decision not to accept the notes anymore.
</blockquote>
The $20 note was released into circulation in June 2020 alongside the $10 note.
It remained the highest denomination in the country for a full year until the Reserve Bank of Zimbabwe introduced the $50 note in July 2021.
The country’s highest note denomination is the $100 bill which came into circulation in April this year.
Businesses started rejecting the $5 note in early 2021 against the backdrop of a spike in the prices of goods and services.
A few months later, the market “demonetised” the $10 note as carrying piles of cash became inconvenient for the transacting public.

Shops, Kombi Crews Reject $20 Banknotes In Bulawayo

The government says it cannot force service providers to accept soiled USD notes that are either worn out or tattered as it cannot print new notes to replace those that are being rejected.
This comes as Zimbabweans are being forced to buy new United States dollar notes on the streets and other private money agencies as old worn-out notes are being rejected on the market.
The issue was raised in Parliament on Wednesday during the question and answer session.
Mt Darwin South MP, Steven Kabozo (ZANU PF), requested to know government policy regarding the worn-out US dollar notes which were in circulation. He said:
<blockquote>
I have noted with concern that even at our toll gates they are no longer accepting even slightly torn notes which is worrisome, taking into consideration that we do not print US dollar notes here in Zimbabwe.
What is the government policy measure in place to get rid of this activity?
</blockquote>
In response, the Leader of government business in Parliament and Justice Minister, Ziyambi Ziyambi, said the US government, through their embassy, issued a statement on the usage of worn-out USD notes.
Kaboko then asked Ziyambi to explain how the government was dealing with the issue of agencies buying the worn-out USD notes at a rate half of the amount of the note on offer.
In response, Ziyambi said Zimbabwe has no control over the issuance of USD notes. He said:
<blockquote>
This is not our currency. It is a US-American government currency. We do not have any control whatsoever over it and we do not even control what happens beyond our borders.
So I am not the right person to issue a policy over a currency that does not belong to the Zimbabwean government.
</blockquote>
The US dollar became legal tender in Zimbabwe in 2009 after the value of the local currency was wiped out by hyperinflation.
While the government has allowed the use of foreign currencies alongside the Zimbabwe dollar, the Zimbabwe National Roads Authority (ZINARA), a government entity, has reportedly been refusing to accept local currency. | <a href="https://www.newzimbabwe.com/us-not-our-currency-and-cannot-give-policy-relating-to-greenback-ziyambi-tells-mps-on-tattered-bank-notes/">NewZimbabwe.com</a>

USD Not Our Currency, We Have No Control - Ziyambi

The United States Embassy in Harare says all US dollar notes including soiled and damaged ones remain legal tender.
In Zimbabwe, businesses reject soiled US dollar banknotes and illegal money changers are making a killing by exchanging old and torn US notes for a fee.
A torn US$10 note, for instance, is being exchanged for half its value in Zimbabwe dollars.
In a statement on Thursday, the US Embassy said all notes remain legal tender unless advised by the Federal Reserve. It said:
<blockquote>
US government policy is that all designs of US Federal Reserve notes remain legal tender or legally valid for payments, regardless of when they were issued.
This policy includes all denominations of Federal Reserve notes from 1914 to the present.
… any badly soiled, dirty, defaced, disintegrated, limp, torn or worn out currency note that is not mutilated and does not require special examination to determine its value, is considered legal tender by the US government.
</blockquote>
Vendors Initiative for Social and Economic Transformation (VISET) director, Samuel Wadzai welcomed the clarification by the US Embassy.
Wadzai urged VISET members not to reject the soiled and torn USD notes saying “it’s not our money”.
Economic analyst Vincent Musewe said banks and businesses should take the lead in instilling confidence in the use of damaged USD bank notes.
Chitungwiza Business Association Secretary-General David Ndoro said:
<blockquote>
It’s possible only if the banks accept those soiled notes. In turn, we can accept from customers.
Major wholesalers and retailers are refusing the notes also, so it’s a real challenge.
Another challenge is that most traders do not bank USD due to high charges and fear of ever-changing monetary policies.
They see it safe to keep their USD at home. Under such a scenario no one accepts such money.
</blockquote>
More: <a href="https://www.newsday.co.zw/2022/07/soiled-damaged-us-dollars-remain-legal-tender-us-embassy/">NewsDay</a>

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