New Zimbabwe Gold (ZiG) notes and coins are in circulation today, much to the relief of the trading public, as confidence in gold-backed money grows across all economic sectors.
Informal traders, commuters and other interest groups have been eagerly awaiting an alternative to electronic payment methods which, apart from hard currency cash transactions, have only been in use since the launch of ZiG on April 5.
Major companies in the manufacturing, retail, wholesale, and aviation industries are accepting ZiG electronic payments before the physical currency is introduced today.
Banks yesterday received the notes and coins purchased from the Reserve Bank of Zimbabwe to commence withdrawals by depositors today.
Since then, the central bank has set weekly cash withdrawal limits at ZiG3,000 for individuals and ZiG30,000 for businesses to manage the initial rollout.
In an update yesterday, Federal Reserve Governor Dr. John Mushayavanhu said that the authorities had finished putting in place the distribution systems by the end of business.
“We will see the new notes and coins take effect on Tuesday (today). All modalities have been completed and tomorrow (today) morning Zimbabweans will be able to start using the currency depending on the logistics of each bank.
“There is a need for Zimbabweans to use ZiG. I appeal to the nation to focus on the currency conservation system for the facilitation and well-being of Zimbabwe. It is all about trust and as the central bank, we ensure confidence in the economy,” Dr Mushayavanhu said.
“We are ready to introduce ZiG coins and ZiG notes,” said Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu.
“We are very optimistic because the market has been eagerly awaiting the coins to help address the change shortage issue.
“Consumers and the general public are tired of receiving coupons and candy instead of redeeming them.”
Mr Mutashu urged retailers to strictly adhere to the official exchange rate, saying: “We have dealt extensively with our members, both formal and informal.
“It is important to note the widespread acceptance and use of ZiG electronic money. We do not expect any deviation from the official exchange rate, especially within the formal sector.”
President of the Greater Harare Association of Passenger Operators (GHACO), Mr Ngoni Katsvairo, said the ZiG currency comes as a relief to transport operators.
“We have faced serious challenges in terms of providing change to passengers and I think this is a relief for all transport operators.”
However, Mr Katsvairo appealed to the government to ensure that fuel is sold in notes and coins.
“We hope that gas stations will accept ZiG payments. Challenges may arise if gas stations reject ZiG notes.
“During the first days of its introduction, entire trips could be paid for exclusively in ZiG, so we had to have dedicated gas stations to refuel in ZiG notes.”
Economist, Mr. Persistance Guananyaya, who is also a member of the Federal Reserve’s Monetary Policy Committee, recently praised the new currency, saying it has brought renewed hope about the country’s currency situation and the economy as a whole.
“It represents a renewed future and hope for our currency, our stable situation and our economy in general. The issue of currency stability has evolved into a thorn in the flesh, but I believe we are in the process of resolving it permanently.”
“We decided to peg the coin to special metals to manage the stability of the coin through a regulated coin called ZiG.
“We have also seen the improvement and interventions in the forex market with the abandonment of the forex auction system and the adoption of a more transparent and more effective system which the central bank will continue to support, but will give the market greater leeway to react,” he said.
Last week, Air Zimbabwe joined another local airline, Fastjet, which was already accepting ZiG, boosting public confidence in the new currency introduced on April 5.
“We are pleased to inform you that Air Zimbabwe accepts ZiG payments for ticket purchases through our sales offices.
“This move reflects our commitment to adapt to the evolving financial landscape and offer convenient payment options to our stakeholders.
“As we integrate the Zimbabwe Gold Currency into our payment systems, we are finalizing the process of accepting it on our online payment platform,” Air Zimbabwe said in a statement.
The national airline said that it recognizes the importance of providing smooth and secure online transactions, and is working hard to ensure that the online payment option is available to its valued customers.
“Air Zimbabwe remains committed to providing excellent service to our passengers while embracing innovative solutions that benefit our customers and the economy.
“We appreciate the continued support from our stakeholders as we navigate these changes together,” Air Zimbabwe said.
The new currency is backed by a mixture of gold, precious metals and foreign currency reserves.
Notably, all ZiG banknotes and coins are produced locally.
ZiG drip banknotes and coins will be introduced to the market in denominations ranging from ZiG1 to ZiG200.
The new currency replaced the Zimbabwean dollar, which has depreciated rapidly against major currencies since the beginning of the year.
The Federal Reserve Bank has in its reserves $100 million in foreign currencies and 2.5 tons of gold worth $185 million. Announce
