Manicaland embraces new ZiG currency

FOLLOWING the introduction of the gold-backed currency —Zimbabwe Gold (ZiG) last Friday — businesses and members of the public in Manicaland have expressed confidence that it will hold fort against other currencies that will circulate alongside it.

Reserve Bank of Zimbabwe (RBZ) last week unveiled ZiG as part of several policy measures to address exchange rate volatility, curtail inflation and restore macro-economic stability in the country.

RBZ Governor, Dr John Mushayavanhu said ZiG will circulate alongside a basket of other currencies, and Zimbabweans have 21 days to convert their old cash into new money.

He announced that the Zimbabwe dollar remains legal tender for all domestic transactions until April 30, when ZiG notes and coins will come into circulation.

The 21-day transitional period will see the Central Bank conducting an extensive educational and awareness campaign on the new currency’s structure and security features before the notes and coins are released at the end of this.

The Central Bank also asserted that ZiG’s value will be secured by both the quantity and worth of precious metals, along with the foreign currency reserves it maintains.

Those interviewed by The Manica Post yesterday expressed optimism that the new currency will hold its own against other currencies circulating on the market.

The new currency has kicked illegal money changers in Mutare, Rusape and Chipinge below the belt as most of them have vanished from their customary trading locations in the Central Business District (CBD).

Only small groups of money changers lingered near their customary spots that were bustling hubs before ZiG’s debut.

Mr Lovejoy Saunyama, a kombi operator who plies the City — Dangamvura route in Mutare could not wait for the circulation of the new money.

He said he is having a torrid time with passengers over the issue of change.

“We are still accepting the RTGs until April 30 because we realised that the commuters should be allowed to use the currency they have in their wallets or pockets, be it RTGS or US$.

“To us the introduction of ZiG is welcome and was long overdue.

“We cannot wait for its circulation, come April 30. We are eager to see its real impact when it eventually hits the streets. Most kombi routes are US$0.50 cents, and it is imperative for Government to quickly address this issue,” he said.

Mr Tendai Marange, who sells construction material like burglar bars, door and window frames at Murahwa People’s Green Market, said ZiG is welcome, considering that most bond notes, especially of smaller denominations were no longer useful as traders were rejecting them due to their eroded value.

“It had become a nightmare to transact in RTGS cash, especially when you need to buy foreign currency.

“For now, we are trusting the process, although we are yet to get hold of ZiG.

We believe it will serve its intended purpose.

“My bank is yet to allow us to transact in the new currency, but I am sure that the development will provide a win-win situation between clients and businesses,” he said.

A money changer who requested anonymity said: “I can’t lie; business has been low my brother. We are all in a state of confusion, and do not know what to do.

“We are yet to figure out how we will be operating when ZiG notes hit the streets. Our clients are equally confused, especially concerning the issue of conversion rates. For now, we are currently dealing with United States dollars and South African rands.”

Mr Munyaradzi Zinomwe, a social commentator and businessman, said he is excited about the development.

“It is a very positive move to the transacting industry.

“With the spiralling black market rate on ZWL, a bold move was urgently needed. We wait for April 30 when ZiG notes will be hitting the market. We are confident and hopeful that this move will be beneficial to all of us,” he said.

A bar operator from Chikanga said Government, through the Reserve Bank of Zimbabwe has a critical task to educate people on how ZiG will operate.

“It is very important for them to let us understand more about the new currency so as to build confidence. They should launch a media blitz like roadshows, newspapers, radio and adverts and reach out to everyone educating them about the new currency,” he said.