Online Reporter
Government through the Reserve Bank of Zimbabwe has come up with measures to stabilise the local currency, ZiG, hence consumers are enjoying its purchasing power.
The business community should also be commended for embracing the ZiG unlike in the past when most businesses shunned the local currency, forcing consumers to buy the US$ on the black market to enable them to buy products.
There is discipline in the market place and consumers are free to use the currency of their choice to buy at most retail outlets. Prices of most goods and services have stabilised because the local currency has remained strong.
The International Monetary Fund team, which is in the country, last week confirmed that the ZiG is now stable and urged Government to maintain the fiscal discipline. The RBZ Governor Dr John Mushayavanhu, said the use of ZiG in the economy, has improved significantly thereby presenting a positive outlook.
According to the central bank’s data, the proportion of local currency settlements through the National Payment System increased from ZiG 7,86 billion (26 percent) in April 2024 to ZiG 56,8 billion (43 percent) as of May 30, 2025. The RBZ said it has been disbursing adequate cash to banking institutions in line with demand. It said as of June 12, 2025, the total ZiG deposits in the economy amounted to ZiG 16 billion of which ZiG 207 million was cash held by banks. The RBZ said the amount in circulation is enough to meet daily deposits and withdrawals by members of the public. Dr Mushayavanhu said what is encouraging is that some banks have already made ZiG cash available through ATMs.
“The Reserve Bank of Zimbabwe assures the transacting public that there is enough ZiG in both electronic and physical cash to meet the current and future demand,” said the RBZ in a statement.
In order for the ZiG to remain stable, businesses should avoid speculative pricing system as what used to happen in the past.
The measures taken by the RBZ have not only stabilised the ZiG, but have also resulted in the decline of black market activities hence the convergence between the parallel market rate and the official rate.
Businesses, as we have said in the past, should not thrive on greed and profiteering, but should continue to support the ongoing measures meant to stabilise the local currency and also grow the economy.
The use of local currency has impacted positively on the economy as evidenced by the revival of a number of companies and the increase in productivity. The use of local currency also improves the competitiveness of goods produced by local companies.
