ZIMBABWE’S central bank is taking action to mitigate a shortage of the newly introduced Zimbabwe Gold (ZiG) currency, addressing concerns that the scarcity is affecting daily transactions. Launched on April 5, the gold-backed ZiG aims to curb inflation and promote currency stability in the southern African nation.
In a press release on Wednesday, Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu announced a partnership with the bank’s financial services arm, Homelink, to facilitate public access to ZiG. The initiative allows individuals to swipe for the local currency in denominations of ZiG1, ZiG2, ZiG5, and ZiG10.
‘The small denominations are meant to provide the transacting public with change,’ Mushayavanhu explained, ‘while the central bank retains the ZiG20, ZiG50, ZiG100, and ZiG200 notes to control the parallel market and stem inflation.’
Recent figures from the Zimbabwe National Statistics Agency show a 2.4 percent drop in consumer prices since April, following the ZiG’s introduction as part of broader measures to achieve exchange rate stability and control inflation.
Mushayavanhu reassured the public of the RBZ’s commitment to ensuring sufficient circulation of the local currency to support normal business operations and economic activities. ‘The bank appeals to all individuals, commuters, public transport operators, retailers, informal traders, and their associations to approach their nearest Homelink branch and swipe for ZiG cash using their local currency debit or credit cards from June 10,’ he said.
He also noted that foreign currency could be exchanged for ZiG at Homelink branches. ‘This arrangement with Homelink is part of wider initiatives by the bank to ensure the availability of adequate ZiG cash in the economy. Going forward, the initiative will be expanded to other bureaux de change,’ Mushayavanhu added.
As Zimbabwe navigates its economic challenges, the RBZ’s measures aim to facilitate smoother daily transactions and enhance the overall stability of the nation’s currency system.
About The Author
