As the Zimbabwe economy continues on a freefall, the informal market has begun rejecting all bond notes and the ZWL$2 bill in favour of the new ZWL$5, ZWL$10 and ZWL$20 denominations.

The informal market controls over 70 percent of the economy and is a major determinant in the direction of the economy.

At Mbare musika, vendors are now rejecting even the new ZWL$2 notes, it’s just going in cycle because once its rejected here, the next person will not accept it because maybe they may want to buy in Mbare,” said one Harare resident, Tedious Magombedze.

Another Harare resident Tecla Sithole who is also a vendor said she failed to buy her stuff after bringing a bunch of $2 notes as they were rejected at most of the vending stalls.

She added that she will find it difficult to accept it from her customers.

Yesterday, the Reserve Bank of Zimbabwe announced that all local currency notes are still legal tender which should be accepted by the market.

It remains to be seen if the market will heed the RBZ call to accept the smaller Denominations.