Zeroes from dying currency

morrow to shift their platforms to the new ZiG. All Zimdollar balances will now be converted to this new currency.

Backed by what?

As of April 5, 2024, RBZ has reserve assets of US$100 million in cash and 2,522kg of gold (US$185 million).

The governor says this is enough “to back the entire local currency component of reserve money which currently stands at $2.6 trillion requiring full cover of gold and cash reserves amounting to US$90 million.”

He says the gold and cash reserve holdings is more than three times cover for the local currency being issued.

Printing money?

Mushayavanhu says he will only print money that is fully backed by forex reserves or assets, and that he will make sure that the currency is fully convertible into the reserve currency on demand.

Bank charges

If you have very little money in the bank, at least there’s some good news for you. For now, your bank won’t charge fees if you usually have less than US$100 in your account.

“Banks will not charge monthly bank maintenance or service charges for individual bank accounts with a conservative daily balance of US$100 and below or its equivalent in ZiG for a period of up to 30 days.” Interest rates

Mushayavanhu has cut the interest rate from 130% to 20%, saying this reflects his new currency policy. What about USD?

The US dollar remains legal tender. The multicurrency system will stay until at least 2030.

The auction is gone

Mushayavanhu officially put the forex auction to bed. “The auction system has been replaced by a refined interbank foreign exchange market under a willing-buyer-willing-seller (WBWS) trading arrangement.”

It’s a big loss for those who submitted funds to access US dollar at the auction.

According to RBZ, all outstanding auction allotments will be converted into ZiG and issued out as non-negotiable certificates of deposits (NNCDs) at the current interbank exchange rate.

In short, if a company submitted money to the auction, they will be paid back in two years, in local currency, at 7,5%

How will he support demand for ZiG

“In order to foster demand for the local currency, government will make it mandatory for companies to settle at least 50% of their tax obligations on quarterly payments dates (QPDs) in ZiG.”