Some traders started accepting ZiG after banks successfully set up their digital platforms and stores reset their prices with the new currency.
Other traders are now at an advanced stage to transition to using the new local currency before tomorrow’s deadline.
Large retailers were transacting both ZiG and foreign currency by allowing those with bank cards to swipe after the banks had completed configuring their systems for the cards to work.
According to a market update by Zimswitch, which has already completed the rollout of the ZiG processing system, there were about 15 banks living with ZiG by yesterday.
These included NMB Bank Limited, POSB, InBucks, 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 A few are indicating they will follow suit and beat tomorrow’s deadline.
Zimswitch is the country’s only national payments platform and clearinghouse. It was established in 1994 to process domestic card-based transactions, ATM and point-of-sale “swipe” transactions, and electronic transfers between member financial institutions in real time over the Internet.
EcoCash Holdings, the largest local mobile money platform, yesterday notified its customers that it has successfully converted Zimbabwean dollars into ZiG although there have been delays in allowing people to spend their ZiG balances on EcoCash products.
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu last week introduced the new currency backed by the country’s gold and foreign exchange reserves.
ZiG notes and coins will begin trading on April 30, but electronic banking systems should be up and running from tomorrow across all platforms and all service providers, with the last banks and shops arriving by then.
Zimbabwe Retailers Association president Denford Mutasho said most retailers and wholesalers had completed the transition from the old system to the new system. For retail, the migration was simple, with rates largely reset in their databases, but connecting to customers’ debit cards once Zimswitch was up and running required issuing banks and mobile money providers to process ZiG transactions so funds could flow from accounts customers to retail merchant accounts. This has been a delay.
“Retailers and wholesalers are ready but it seems the swipe cards are not yet working. Most of them have been assured by their banks that it is possible that all systems will be down tomorrow,” Mutashu said.
Harare City Council also noted that they had successfully switched from the Zimbabwean dollar to the ZiG.
“The City would like to inform its valued residents that following the currency change, all customer account balances have been converted to ZiG with immediate effect. The City already deals in Zig and other currencies in line with the multi-currency system. All historical transactions on customer accounts are available in Zimbabwean Dollars for inspection, verification and accurate conversion to ZiG.Residents are encouraged to pay their bills on our online platforms as well as in our banking halls,” said Harare City Clerk, Engineer Hosea Chisango.
Tobacco farmers are optimistic about the advent of ZiG which they feel will help contain the parallel market and maximize the value of their crops.
In separate interviews on the auction floor yesterday, tobacco farmers said they had hope for the ZiG and called for more educational campaigns to better understand the new currency.
Karui’s Simon Masawa said there is great hope that the new currency can withstand inflationary pressures since it is backed by gold among other assets.
“In my view, ZiG is better even though we are still waiting for trading. Dealing with the old currency was a bit difficult because it was prone to inflation. Ours was constantly declining and hurting operations, but now we are happy because we have ensured stability,” he said. the currency”.
Ms. Jane Mindy of Bindura said that if the ZiG coin performs better than the previous coin, tobacco production will rise significantly.
“We hope that this new currency will have a greater value than the old currency. We appeal to banks to speed up the formation processes so that we can start trading fully,” she said.
Mr Themba Mutikane of Mt Darwin said the 25 percent of local currency paid to tobacco farmers would make sense if there was strict compliance with value preservation measures announced by the Reserve Bank in its monetary policy statement.
“There is hope if the currency remains stable. We as farmers are happy that the government has introduced a local currency with greater value,” he said. Executive Director of Premier Tobacco Auction Floor, Mr. Owen Morumbi, said the new currency will benefit farmers as they will get full value for their money. Advertisement
