Businesses urged to continue accepting ZW$ until monthend

Judith Phiri, Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has urged business entities, commuter omnibuses, shops, fresh vegetable markets and vendors to continue accepting payment in Zimbabwe Dollar notes (ZW$) notes until 30 April 2024.

This comes as most business and traders have started accepting ZiG currency after banks successfully configured their digital platforms and the shops reset their prices in the new currency.

RBZ Governor Dr John Mushayavanhu last week introduced the new currency which is backed by the country’s gold and foreign currency reserves.

ZiG notes and coins will start circulating on April 30, but the electronic banking systems should be operational starting tomorrow across all platforms and all service providers, with the last banks and shops coming on line by then.

However, following the announcement of the new currency, some businesses had started to reject the ZW$ which is still a legal tender till monthend to allow the smooth transition to the ZiG.

“The Reserve Bank has, however, taken note of the concerns of the public emanating from the rejection of the ZW$ notes to be demonetised, which has resulted in the unavailability of ‘change’, thus forcing businesses, mainly commuter omnibuses to round-off prices to US$1.

“In this context, the Reserve Bank would like to reiterate that the ZW$ notes currently in circulation are still valid and remain legal tender until 30 April 2024. Accordingly, the ZW$ notes should continue to be used for transactional purposes at the announced ZiG/ZW$ conversion factor of 2498.7242,” said the central bank Governor, Dr Mushayavanhu in a statement.

He said business entities where the notes have been widely used, including commuter omnibuses, shops, fresh vegetable markets and vendors, are advised to continue accepting payment in ZW$ notes until 30 April 2024.

Dr Mushayavanhu said further to the Reserve Bank’s Press Statement of 6 April 2024 on currency conversion from ZW$ to ZiG, the banking sector and payment service providers have made significant and satisfactory progress, in this regard.

“Commendably, over 90 percent of the banking institutions and mobile bank service providers have successfully configured their systems and processes from ZW$ to ZiG, with banking services now being accessible for the convenience of the transacting public. The Reserve Bank is also encouraged by the positive response and enthusiasm from the business community and the public at large to embrace and use ZiG,” he added.

He said for the avoidance of doubt, the Bank advises the public and businesses that the Know Your Customer (KYC) transaction limit of ZW$100,000 does not apply to proceeds from legitimate business transactions during the transition period to 30 April 2024.

Dr Mushayavanhu said they advise the public that the educational and awareness campaign on the transition from the ZWS to the use of ZiG in the market is currently underway and expected to be all-inclusive, reaching out to a wider spectrum of society by the 30th of April 2024, in line with the Bank’s financial inclusion strategy.