Forex-only traders exposed!… Flimsy tactics to resist use of ZiG

SOME shops in Bulawayo continue to flout Government regulations by trading exclusively in US dollars and South African rand while giving flimsy excuses as cover for refusing to transact in Zimbabwe Gold (ZiG).

Zimbabwe has maintained a multi-currency system, which is in place up to 2030, and businesses are obliged to trade in various currencies including the local unit.

A survey conducted by Chronicle in Bulawayo established that traders, mostly small shops dealing with fast-moving consumer goods and clothing or footwear, were not accepting swipe card payments or electronic transfers in ZiG altogether as some claimed their POS machines were not working.

Retail outlets commonly known as “China shops”, which offer a range of goods such as kitchenware, clothing and electronics products are solely accepting foreign currency and shunning any other forms of payment.

Such practice contradicts Statutory Instrument (S.I) 85 of 2020, which permits electronic payments through foreign currency accounts, cash payments, or any electronic payment platform.

While the ZiG is circulating on the market electronically, the release of banknotes and coins is being drip-fed into the market in tandem with production growth as the Government deliberately seeks to promote stability.

The news crew also observed that some retailers display prices in both US dollars and ZiG at the official exchange rate, while others pegged prices using parallel market rates.

The Government has previously warned retailers against such malpractices, with the Financial Intelligence Unit (FIU) notably freezing the bank accounts of several entities for refusing to trade in ZiG.

When the Chronicle visited businesses, it observed that shops only accepted US dollars for selected goods, while China shops, FMG Wholesalers and some food outlets such as Royal Sunflower only accept US dollars. Those that accept the ZiG peg prices at a rate above the official exchange rate.

“The only meat sold in ZiG here is beef blade. The rest is priced in US dollars. From what we are told, the suppliers don’t want to accept the ZiG and that is why we then price exclusively in US dollars,” said an employee.

The news crew also observed that some shops displayed information purporting that they are accepting the local currency but rejecting it at the till points.

A shop attendant at KidsMart located at corner Jason Moyo Street and Ninth Avenue in the city centre yesterday claimed that the system was down and were only transacting in either South African rand or USD.

A worker at one supermarket said they were yet to accept ZiG currency payments on selected goods. Another employee at Cover Supermarket said the retail chain is encountering challenges in terms of maintaining its clientele due to inconsistency in pricing.

“All we are told is that suppliers have preferences in their pricing. This is, however, affecting sales and loyalty is lost due to such,” said an employee.

A local trader, Mr Peter Ndlovu said: “It’s not like we do not want to use it but it is the circumstances that force us.”
Consumer Council of Zimbabwe (CCZ) director, Mrs Rosemary Chikarakara Mpofu said collective effort was needed to build solid confidence in the currency.

“It’s important for us to realise that the ZiG currency has value because it is backed by gold and other precious minerals. However, it also depends largely on consumer confidence and now is the time for all key stakeholders, Government, business, suppliers of basic goods and services and consumers themselves to make concerted efforts to rebuild consumer confidence and give value to the ZiG,” she said.

Mrs Chikarakara Mpofu said other countries have accepted and acknowledged the importance of the embedded value of the ZiG.

“If we as Zimbabweans keep speaking lowly about our currency then we will end up losing confidence. Consumers must not be subjected to abuse by being offered a packet of sweets or biscuits as change,” she said.

Former Industry and Commerce Minister, Dr Sithembiso Nyoni, said decisive action was being taken against errant retailers.
“The world is commending Zimbabwe for its efforts in terms of stabilising the economy. The ZiG is one of the best performing and strongest currencies in the region right now,” she said.

“As a nation, we need to support the ZiG and members of the public must report these shops because we don’t want our people to be short-changed,” said Dr Nyoni who is now Minister of Environment, Climate and Wildlife.

She said while the Government acknowledges the concerns raised by local retailers, it is committed to working collaboratively with them to address their concerns.

“Building trust in the local currency is a shared responsibility and we are dedicated to implementing measures that will support its stability and value,” said Dr Nyoni.

She said for Zimbabwe to navigate its economic recovery journey, it was crucial for all stakeholders, including local retailers, to work together towards a common goal of enhancing financial independence and prosperity.

Dr Nyoni said by fostering a supportive environment for the local currency, the country can sustain its progress toward economic stability and sustainable development.

The International Monetary Fund (IMF) has applauded Zimbabwe’s tight monetary policy stance, which has seen inflation and exchange rate stability since April this year and projected a strong economic rebound in 2025, anchored by improved agriculture performance and ongoing capital projects in the manufacturing sector.