This is the African approach to running a Central Bank. If you made it up for film people would say it was a racist cliche. It's long winded but worth a read.
DR G. GONO
RESERVE BANK OF ZIMBABWE
THE IMMINENT LAUNCH OF SUNRISE 2
21 NOVEMBER, 2007
1. INTRODUCTION AND BACKGROUND
1.1 Ladies and gentlemen, fellow Zimbabweans, we meet at a
point in time when as a Central Bank we have been impelled
to now take stern and unprecedented punitive measures
against the dark forces of parallel market trading and
1.2 It has become more than evident that, left to their own
whims, the blossoming cash barons, smugglers and other
illicit dealers will threaten the stability of our National
1.3 As Monetary Authorities, we have closely trailed the recent
trends and studied the avenues through which cash is being
kept outside the formal systems, and time has come now that
swift measures be taken.
1.4 As part of a tactical move to entrap these disruptive dealers,
I had recently announced that Sunrise 2 was postponed to a
1.5 Just as was expected, the cash barons, with total complicity
of some banking institutions and bulk cash handling
corporates swang into full gear with their illicit dealings,
resulting now in ARTIFICIAL cash shortages that are
inconveniencing innocent rural folks and other law abiding
1.6 The purpose of this Statement is to lay out in no uncertain
terms the state of preparedness of the Reserve Bank of
Zimbabwe to now launch Sunrise 2.
2. THE LESSONS AND EXPERIENCES UNDER
2.1 Our swift operations under Sunrise 1, launched on 1 August,
2006 gave us the following key lessons:
(a) Some banks were allowing cash barons to deposit parallel
market cash in excess of set daily limits. This time around,
those hoarding cash will burn their fingers as new stricter
surveillance systems have been devised;
(b) The RURAL AREAS need special consideration, given that
logistically, some terrains are not easily accessible. This time
around, the vehicles and personnel to be deployed to rural
areas will be more intense. We would like to assure our rural
area parents, sisters, brothers, daughters and sons that a
special programme will be put for them to make sure that noone
loses a dollar from Sunrise 2. They, therefore, need not
worry. Equally, measures are in place to ensure that they are
not used as escape hide-outs by fraudsters;
(c) That some cash barons and bulk cash handling companies
were splitting their stampede deposits using runners they
picked from the streets. This time around, questions will be
asked on all bulk cash deposits to certify source. Where no
convincing proof is rendered, the money will be frozen in
zero interest Anti-money Laundering bonds for a
minimum period of 5 years pending further
(d) Some dealers rushed to rural areas and dumped their dirty
cash to unsuspecting rural people by buying off livestock in
droves. This time around, the Zimbabwe Republic Police will
be strict on issuance of livestock movement certificates in
and out of rural areas;
(e) Some had bulk-shipped cash in neighbouring countries and
some as far as Europe in search of foreign exchange in the
parallel market. This time around, there will be tight
collaboration with ZIMRA and law enforcement arms to
ensure that no such cargo of returning cash will re-enter scotfree.
3. SUNRISE 2
3.1 Armed with the above lessons, the general public, as well as
the financial sector are hereby forewarned that Sunrise 2 is
3.2 The Reserve Bank has now put in place all the machinery in
place, to enable the implementation of a short and precise
change-over programme, which would be completed in a
matter of a few days, as opposed to the longer time accorded
under Sunrise 1.
3.3 In order to guarantee maximum impact in terms of penalties
to the destructive forces of parallel markets, the imminent
actual date for Sunrise 2 shall remain undisclosed.
3.4 SINCERITY IS SUBJECT TO PROOF
3.5 In case there are those die-hards who think the Reserve Bank
could be bluffing, the following systems have been put to the
publicâs eye as proof that indeed Sunrise 2 is upon us:
(a) The actual notes of the new currency have been circulated to
the banking system, the media fraternity and the business
(b) The Reserve Bank has already assembled country-wide
fueling depots complete with the logistical maps, to power
Sunrise 2. These maps are open for viewing;
(c) All the vehicle muscle, by province and by district has been
aligned and is ready to go;
(d) The entire countryâs bank branch network has been clustered,
with comprehensive teams all now set for deployment.
(e) Already, the entire Zimbabwe Republic Police machinery has
been alerted to be ready for the imminent Launch of Sunrise
NEED FOR PREPARING I.T. SYSTEMS
3.6 The swift and far-reaching implications of Sunrise 2 demand
that all Bank and Non-bank Financial Institutions
immediately gear their systems up for the change-over.
3.7 As Monetary Authorities. we advise that such preparation
includes simulations for the removal of 1, 2, 3 or even 4
zeros from the current set of legal tender, as the actual
change-over will be done with no advance warning.
3.8 The Bank Supervision and Surveillance arm of the Reserve
Bank will be, with immediate effect, moving around banks
to certify their state of preparedness.
3.9 Any defaulters will face appropriate corrective measures.
3.10 It is imperative that Audit firms and the entirety of the
corporate sector also ensure that their systems are ready for
this swift surgical operation.
NEUTRALITY ON PRICES
3.11 As Monetary Authorities, we also wish to highlight to the
corporate world, including wholesalers and retailers that this
change-over should not translate into underlying price
increases as happened under Sunrise 1.
3.12 The Reserve Bank will work closely with the National
Incomes and Pricing Commission (NIPC) to make sure that
members of the public are not short-changed.
3.13 With a total of $58 trillion in cash currently in issue and in
circulation, the current shortages are principally a result of
underground parallel market trading activities.
3.14 With immediate effect, therefore, all holders of excess cash
must deposit same back in the formal system in order to
avoid serious and perilous losses when their hoarded loot
turns into useless manure.
3.15 The cut-off date for acceptance of current bearer cheques will
be announced imminently along with the actual launch date.
4.1 Fellow Zimbabweans, time has come that we say no to selfdestruction
of our economy by a few bad apples among us
whilst the rest watch.
4.2 As Monetary Authorities, we say NO to this callous path, and
hereby declare total war against the illegal dealers who are
causing havoc in our markets.
4.3 This time around, those who do not take heed will never
recover financially, as a definite ultimate blow is being set
4.4 To the Rural folk, we say, please do not panic as special
tailor-made conditions are being put in place for your
DR G. GONO
RESERVE BANK OF ZIMBABWE
21 November 2007