The Impact of Bond Coins in Business Transactions at Nkayi Growth Point in Zimbabwe

Abstract

Bond coins are a currency of coins backed by a bond. The introduction of bond coins by the Zimbabwean monetary authorities was made in December 2014 within the context of a multicurrency economy. Among major purposes of introducing these coins was to eliminate overpricing of low priced goods and facilitate availability of change so as to create economic fairness to consumers especially the marginalized such as the poor and those in rural areas. This study focuses on the impact of bond coins in business transactions of a rural community, Nkayi growth point in Zimbabwe. A survey of both consumers and the business community was made. Thirty-five consumers randomly selected and fifteen purposively selected business entities were the respondents of the study. Findings showed the acceptance of bond coins has been gradual among the consumers, with only a few accepting them at the time of their introduction and the majority, but not all, appreciating them in due course. Almost the entire business community appreciates the economic significance of bond coins and has as a result altered the pricing system in response to the introduction of the coins.