ZiG offers transacting convenience

Judith Phiri, Business Reporter 

THE introduction of ZiG by the Reserve Bank of Zimbabwe (RBZ) has offered a lot of transaction convenience to Bulawayo residents with shoppers expressing excitement at the comfort derived from using it without going into the streets to look for forex amid reports that the bank notes and coins will be introduced into the market on Tuesday next week.

The bank’s Governor, Dr John Mushayavanhu revealed that they have completed printing and minting the new ZiG banknotes and coins and will introduce them into the market on Tuesday next week.

ZiG notes, he said, will be drip-fed into the market in denominations ranging from ZiG1 to ZiG200. The coins will come in the form of half ZiG (50c) and quarter ZiG (25c).

The new currency which was introduced through a Monetary Policy Statement on 5 April has been firming and is now trading at 13,3 against the USD.

A snap survey conducted by the Sunday News, revealed that shoppers were going back to traditional supermarkets such as TM Pick n Pay Supermarket, OK Zimbabwe, and Choppies, where there were long winding queues as people were transacting using the ZiG. 

Ms Sithembiso Dube from North End suburb said she no longer saw the need to go and  change her local currency to US dollars in the streets. 

“I can now easily buy my groceries using the ZiG rather than going to money changers like we were doing before. The ZiG rate is quite firm and it’s much cheaper to buy groceries and pay utility bills using ZiG rather than the US dollar,” she said. 

Mr Micheal Gondo said the new currency which is backed by gold looks promising and is trading at a fair rate against the US dollar. 

He expressed hope that transport operators would start accepting the new currency when it is released to the market and end Bulawayo’s reliance on the use of forex only.

“Bulawayo has become a forex economy. We hope the release of the coins and notes by the RBZ will end this trend,” he said. 

Junior Chabaya, a student at the National University of Science and Technology (Nust) said he was looking forward to the introduction of the ZiG notes and coins into the market. 

“We were facing challenges with transport operators because when you gave them US$1 they would give you five rand change but at the same time saying US$1 for two or 20 rand for two which was a bit confusing. It’s our hope that the ZiG coins will provide relief for us the commuters,” he said. 

Speaking at the unpacking of the Monetary Policy Statement Breakfast Meeting at the Zimbabwe International Exhibition Centre (ZIEC) in Bulawayo on Wednesday, Dr Mushayavanhu expressed confidence that ZiG would turn the tables against the black market and inflation.

He said since its introduction, ZiG’s exchange rate has been market-determined and will continue to be based on the demand. 

“The exchange rate of ZiG to other currencies is going to be market-determined and this is what has been happening from the 8th of April when ZiG started trading up to now. The banks have been quoting bids and offer rates based on demand from their customers from the market and the exchange rates that you have seen have not been influenced at all by the central bank or by the price of gold,” he said.

In an interview with our Harare Bureau, RBZ Governor Dr Mushayavanhu said the new currency denominations — backed by a combination of gold, precious minerals and foreign currency reserves — were produced locally.

He also said the Central Bank had printed enough notes and coins “to satisfy the needs of the market”. 

The delay in rolling out physical notes and coins was meant to allow for extensive public education campaigns designed to ensure that stakeholders understand and embrace the new currency.

The Central Bank, said Dr Mushayavanhu, was presently conducting extensive educational campaigns to raise awareness on features of the new currency.

“But before issuing it to the public, we have to make sure that we have undertaken an extensive education campaign so that people understand the features of the new currency,” he added. 

“We want to avoid a situation where some unscrupulous people can cheat people by giving them fake notes and coins.

“So, this process is ongoing.”

The bank, he said, was working closely with the Ministry of Information, Publicity and Broadcasting Services to publicise the new currency in all parts of the country.

Dr Mushayavanhu said the ZiG was a stable currency that has been gaining value progressively since its introduction.

Presently, an ounce of gold is trading at US$2  400 on the London Bullion Market Association (LBMA), with prices of the metal expected to continue on an upward trajectory.