We want our change back

ON April 5, 2024, the Reserve Bank of Zimbabwe introduced a new “structured currency” called Zimbabwe Gold (ZiG).

According to the central bank, ZiG seeks to tackle inflation and, in turn, stabilise the country’s economy.

The new unit will be backed by foreign currencies, gold and other precious minerals, and will circulate alongside a basket of other currencies.

Banks have since converted the Zimbabwe dollar balances into the new currency while the public were given 21 days to convert their old cash into the new money, starting from the day of the announcement.

But what does the latest development mean for consumers?

As soon as the central bank announced the aforesaid measures, some retailers —informal traders included — began to refuse transacting in the outgoing Zimbabwe dollar notes.

The other option that is now available is the ZiG swipe or transfer platforms after most banking institutions had, by the time of going to print, finalised their functionality tests.

While this has brought a sigh of relief to consumers, some still find themselves at odds, especially when they make US dollar payments.

For some time now, the local notes have been used as a stopgap measure for ease of transaction, where change is needed.

With ZiG coins and notes only expected to come into full circulation this monthend, unnecessary tussles of sorts will probably be the order of the day over change.

Retailers are capitalising on the situation to push volumes by forcing consumers into impetuous purchases as a change settlement measure.

Imagine Mai Chiremba, a retiree, stepping into her neighbourhood grocery store.

She wants to buy a 10kg packet of mealie meal priced at US$6,50. Mai Chiremba has a handful of Zimbabwe dollar notes, which, when converted, adds up to 50 US cents, which she hopes to use.

But the cashier shakes her head and notifies her that they no longer accept the outgoing notes as a means of payment. Thus, for the US$0,50 cents change, she must get something that equals the amount.

The old lady hesitates, glancing at the shelves.

She spots a small packet of spaghetti priced for the amount. She does not need the spaghetti but rather tomatoes that are not sold in that shop. Alas, she has to take the spaghetti because it is the only way to make use of her remaining change.

Reluctantly, she adds it to her shopping basket, paying US$7 in total for the maize meal and spaghetti.

Here is another scenario.

Last Monday, I went to a tuck shop near my house intending to buy a small exercise book for my nephew who is in Grade Two.

The book costs US$0,30 , so I handed over some Zimbabwe dollar notes equivalent to the market rate that was being charged by the shop on that particular day.

The lady in the shop, however, told me: “We no longer accept old local notes. You can either pay in US dollars or buy something else to make up for the change.”

Frustrated, I had to rush home and look for one US dollar. I also had to add a pencil and pencil sharpener, which I had no intention to use.

This extra purchase was out of my budget list but I had no option.

There are a lot of important things that one can do with US$0,50 cents change or any other amount for that matter.

Retailers and service providers need to be considerate and stop being greedy. The authorities have clearly indicated that the Zimbabwe dollar remains legal tender for all domestic transactions until April 30.

Why then should service providers make consumers’ lives hell by voraciously driving them out of budget?

These are some of the things that unjustly lead to inflation as sellers are always tempted to round off their prices.

But the coming in of ZiG coins and notes is anticipated to level the playing field.

Meanwhile, I feel the transition to ZiG has highlighted the digital divide.

While tech-savvy individuals easily adapt to digital payment platforms, others struggle. The elderly, rural communities and those without smartphones are facing some challenges.

Without hard cash, they are at risk of exclusion from essential services.

However, it is common for teething challenges to be experienced whenever a new idea is introduced. We, both consumers and retailers, are the ones who can make the new currency work or not.