International certification of ZiG to boost the economy

Pic Mushayavanhu

THE new Zimbabwe Gold (ZiG) currency’s official recognition and list by the International Organization for Standardization (ISO) and the World Bank as a global currency is expected to boost investor confidence, strengthen the country’s financial markets, and enhance its reputation as a viable investment destination.

The currency has been officially recognised and listed by the International Organisation for Standardization (ISO) and the World Bank as a global currency, marking a significant milestone in Zimbabwe’s economic development and reintegration into the global financial system.

This achievement follows a rigorous evaluation process, during which the ZiG currency met the required standards and criteria for international recognition. The ISO 4217 code assignment confirms the ZiG as a legitimate and tradeable currency, paving the way for increased global trade and investment opportunities.

The recognition of the ZiG currency by the World Bank and ISO is a testament to Zimbabwe’s economic progress and its commitment to fiscal discipline and transparency.

With its new international status, the ZiG currency is poised to play a key role in promoting economic growth, stability, and development in Zimbabwe, and solidifying the country’s position as a major player in the global economy.

In a recent statement, Reserve Bank Governor, Dr John Mangudya, said that the currency code is a unique three-letter acronym that identifies a country’s currency in international trading platforms.

“Following the Monetary Policy Statement pronouncement on the 5th of April 2024 introducing the Zimbabwe Gold (ZiG) currency, the public is advised that, in line with international best practice, the new currency code has been approved by the International Standard Organization (ISO) 4217 Committee on Currency,” said Dr Mushayavanhu.

He added that in the first two letters (ZW) the currency code consists of a unique three-letter acronym, where the first two letters ‘ZW’ represent the country, and the last letter ‘G’ represents the currency identifier. Furthermore, each currency is also assigned a unique numeric code, providing a comprehensive identification system for international transactions and trade.

“The Zimbabwe Gold (ZiG) currency was assigned currency code ZWG and numeric code 924 to replace ZWL and 932 respectively. The minor units of the Zimbabwe Gold currency shall be denominated with two decimal places as ‘cents. These changes became effective from June 25 and both codes will circulate concurrently on international platforms for a period of two months up to August 31. This is to allow necessary and seamless system changes in the background.”

Dr Mushayavanhu explained that the currency code is used in the foreign exchange market, across banking, payments, businesses, and other systems.

“The Reserve Bank would like to reiterate that Zimbabwe’s currency name remains Zimbabwe Gold (ZiG) and will continue to be used in the country’s notes and coins, and as a reference for all domestic transactions. This is in line with global best practice where there exists a currency code and currency name for each respective country, added Dr Mushayavanhu.

Dr Mushayavanhu assured that that the changes do not affect the transacting public as these are done as back-end system processes, the bank will ensure a seamless transition from the old currency number and currency code to the new ones.@Lo7246Lovelyn