Hopes high as nation embraces ZiG

THE majority of Zimbabweans have overwhelmingly embraced the new gold-backed currency, ZiG (Zimbabwe Gold), slated for introduction into the market by month-end.

They expressed hope that ZiG will accelerate the development of the country.

“I think to some extent the move by the RBZ (Reserve Bank of Zimbabwe) will ease the cash crisis and it will improve liquidity as we will now be having access to a variety of money.

“The public must also be properly educated about this currency before it is made available. What we want to know is will the ZiG be accepted at fuel stations, will the Registrar accept this currency when we are trying to get passports and other documentation? These are the things we want to know,” said Mr Nyasha Muchena.

Mr Prayer Mpofu said the new currency should be recognised as legal tender in all shops.

He also called for legislation to safeguard the local currency from shop operators who favour foreign currencies.

“I think we need to take note that we have contractual obligations with a number of partners which were tied into the dollars as private sector. People are transacting every time. We witnessed that on the introduction of bond notes and coins, how they have been able to tackle the issues of change.

“We as the population need to be protected from foreigners that prefer transacting in forex and ignore the local currency. As a nation we will accept the currency but there is need for more consultation and awareness to manage the process before the money is made available,” said Mr Mpofu.

Another citizen, Mr Gift Nyama said he hopes that the currency comes as a permanent solution to challenges facing the country.

“We have witnessed the growth and ultimate withering of our local currency. Let this be a permanent solution and we hope this puts an end to the cash crunch,” said Mr Nyama.

“We are haunted by memories of hyperinflation and as such we hope to see this new currency perform against other currencies.

“The introduction of new currency was always going to be a challenge from a confidence perspective and creative ways have been employed to slowly build market confidence on new currency,” said Mr Nyama.

Mr Khumbulani Moyo said the ZiG should have been introduced after the revival of industries.

“Government should rather focus on ensuring that cash is not going out of the country and leaving our banks short of cash. If we are to have a strong currency then we need to have industries that will inspire confidence in investors. Government must also monitor the operations of foreign industries and how they move their cash. We do not find many foreign people in our local banks. One wonders where the money their businesses make is going,” said Mr Moyo.

Zimbabwe introduced the ZiG last Friday following an announcement by the new Reserve Bank of Zimbabwe Governor John Mushayavanhu in the Monetary Policy Statement.

The new notes will come in denominations of 1, 2, 5, 10, 50, and 100, with coins for half and a quarter ZiG. All ZWL deposits are to be converted to ZiG, and banks will accept the old notes for the next 21 days.