Traders begin accepting ZiG currency

Some traders have started accepting ZiG currency after banks successfully configured their digital platforms and the shops reset their prices in the new currency.

Other traders are now at an advanced stage to migrate to the use of the new local currency before tomorrow’s deadline.

Mainstream large retailers were transacting in both ZiG and foreign currency by allowing those with bank cards to swipe after the banks completed configuring their systems so the cards would work.

According to a market update by Zimswitch, which has already completed the roll out of the ZiG processing system, about 15 banks were live with the ZiG by yesterday.

These included NMB Bank Limited, POSB, InnBucks, Empowerment Bank, Stanbic Bank, ZB Financial Holdings, Nedbank, CABS, First Capital Bank, Ecobank, One Money, O’mari, My Cash, African Century, EcoCash and Steward Bank, with the few remaining indicating that they would follow suit, and beat tomorrow’s deadline.

Zimswitch is the country’s sole national payments platform and clearing house. It was incorporated in 1994 to process domestic card-based, both ATM and point of sale “swipe”, and EFT transactions among member financial institutions in real-time online.

EcoCash Holdings, the largest local mobile money platform, notified its customers yesterday that it had successfully converted Zimbabwean dollars to ZiG currency although there were delays in letting people spend their ZiG balances on EcoCash products.

Reserve Bank of Zimbabwe 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.

Confederation of Zimbabwe Retailers president Mr Denford Mutashu said most retailers and wholesalers had completed the migration from the old system to the new. For the retail trade the migration was simple, largely resetting prices in their databases, but the connection with customer debit cards once Zimswitch was up and running required the issuing banks and mobile money providers to be processing ZiG transactions so the money could flow from customer accounts to retailer accounts. This has been the delay.

“Retailers and wholesalers are ready but it looks like swipe cards are not yet working. Most have been assured by their banks that tomorrow it could be all systems go,” said Mr Mutashu.