Demand for more small ZiG denominations is an overwhelming supply in the SME sector, with vendors pleading with the Reserve Bank of Zimbabwe to release more coins for changeability and ease of handling.
While the golden principle of money supply states that it should be scarce, vegetable vendors and other SMEs have appealed to the Reserve Bank of Zimbabwe to release more small denominations especially coins for a change and ease of doing business.
“We hear about it, but it is not available here in the retail locations. We are eagerly waiting for it because it helps us change for our customers,” said a vendor at the mall.
“Because of the lack of small denominations, we end up forcing our customers to take things they don’t like in order to transact, so if more ZiG is rolled out it will make our business easier,” another noted.
Others who have used ZiG are satisfied with the bargaining power of the new currency.
“ZiG has become a public relief for transportation. We can now get change unlike before when the Kombes were manipulating us because they could not give us change,” said a car wash vendor in Harare.
“We want to utilize ZiG coins in large quantities so that I can give you the rest when I sell water instead of forcing customers to take another bottle in order to balance,” one water seller explained.
The Reserve Bank of Zimbabwe introduced the new ZiG currency on April 5 in a move expected to resolve exchange rate fluctuations and encourage the use of the local currency.
According to the central bank, ZiG is fully backed by a mix of gold and other precious metals, including foreign exchange reserves.
The central bank continued to issue ZiG notes and coins on April 30, amid optimism of maintaining the value of the currency and smooth transactions and stability.
Reserve Bank Z also noted that it held over US$100 million in foreign currency, including 2.5 tons of gold worth US$185 million.
As the Reserve Bank of Zimbabwe releases more ZiG coins into circulation, sellers expect the larger coins to be in small denominations for ease of dealing. zbc