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DEPOSITORS across the country started withdrawing the new Zimbabwe Gold (ZiG) notes and coins yesterday as the circulation of the new structured currency goes on full throttle.
Backed by gold and other precious metals, and a basket of foreign currencies, market players have fully embraced the ZiG following its introduction by the Reserve Bank of Zimbabwe (RBZ) on April 5.
Key economic stakeholders have expressed optimism that the adoption of the ZiG, which until yesterday was only being used electronically to pave the way for effective public awareness and printing of new notes and coins, is the panacea to the desired long-term stability and smooth business transactions.
The RBZ has pegged the withdrawal limits at ZiG3,000 for individuals and ZiG30,000 for corporates with denominations of 1 ZiG, 2 ZiG, and 5 ZiG in coins,
And notes of between 10 ZiG to ZiG200.
Members of the public and business players who spoke to Chronicle in different parts of the country yesterday were excited that the ZiG has hit the market as promised by the apex bank and hoped its circulation would impact positively on the economy and enhance transacting convenience.
In Bulawayo, depositors queued outside banks before business hours, seeking to withdraw their cash but had to wait until mid-morning as banks said they were fine-tuning their systems before issuing out the cash.
After withdrawing their money consumers went on to do shopping across the city centre, bringing joy to retail shop owners who readily welcomed their customers.
“Zimbabweans should have trust in the ZiG and be willing to use it to strengthen its value,” said Mr Nkanyezi Ndlovu, an official from one retail chain stores.
“Government and businesses should peg prices in ZiG, if one wants to use United States dollars they should put high prices, so that people will opt for the ZiG rather than USD. That way, we’ll create demand for ZiG, which will make it strong.”
Informal traders and commuters also welcomed the ZiG saying it will be a good answer to the problem of change and lessen the burden on costs associated with electronic payment methods.
In the Midlands province, individuals who were eager to get their hands on ZiG expressed joy after withdrawing ZiG notes and coins from the banks for the first time.
Commuters who had been anxiously waiting for ZiG to use when travelling heaved a sigh of relief saying they will no longer being over-charged by commuter omnibus operators who were forcing them to accept jiggies or tissue paper rolls as change.
Most banks in Gweru had queues as the banking public eagerly awaited to withdraw the new currency.
Gweru based businesswomen, Smelly Dube of River Valley Properties said they were accepting ZiG from their clients.
“ZiG is now here and it’s a welcome development for us and we call on the members of the public to embrace it. As River Valley Properties, we are saying come and purchase a stand or pay your instalments using ZiG,” she said.
Dr Tinashe Manzungu, the co-founder and CEO of Zimbuild Property Investments and Group Chairman of TM Group commended the Government for introducing ZiG.
“This is our currency and we need to support it and for the first time since, it is backed by gold and so it should work,” he said.
“What we need to work on is the issue of perception. We need to rub off the negativity that we might be having as a country, before the international community probably respects our own innovations and policies as a country.
“So, we should see infrastructure development, more employment creation due to funding of new projects coming up. This is posing as a new picture for Zimbabwe as we look at attaining Vision 2030.”
A Gweru motorist, Mr Xavier Matarutse said: “Now that we have ZiG, we will no longer be short-changed. This is a welcome development by the Government”.
Confederation of Zimbabwe Retailers (CZR) president, Dr Denford Mutashu said ZiG withdrawals will bring life to their operations.
“Most retail shops today were a hive of activity with consumers thronging shops to purchase groceries using the ZiG electronically and physically,” he said.
“The ZiG has done away with issues of change in shops where consumers would be given sweets and chocolates as change.
“This will see an increase in liquidity and an increase in purchasing power,” said Dr Mutashu.
Working closely with stakeholders and the central bank, he said they wanted the ZiG to be a success and improve business operations as opposed to using forex.
“We want them (consumers) to embrace ZiG and be proud of a currency that they can identify with,” said Mr Mutashu.
He said the unveiling of ZiG presents a significant milestone in Zimbabwe’s economic journey, highlighting the Government’s dedication to enacting measures that promote economic growth and stability.
Bulawayo Chamber of SMEs programmes coordinator, Mr Nketa Mangoye Dlamini said all business players were ready to use the ZiG.
“From SMEs point of view, since people have been using the ZiG through online transactions, people have had a feel of how it is and how to use it to purchase things from the time the RBZ Governor introduced the new currency,” he said.
“Our SMEs are ready to use it and we pray that people act responsibly and try to preserve the value of the currency and avoid speculation.
“It’s our money and we have to use it and use it responsibly. I noticed there are restrictions on withdrawals and its strategic move to avoid steep demand.”
Mr Dlamini further urged the Government to encourage bulk suppliers of different inputs and goods to also accept the ZiG to reduce the demand of the United States dollar. Other public transport sector operators also welcomed the ZiG and hoped it will retain its value for long term.
An official from Tshova Mubaiwa Cooperative, Mr Ndabazabo Mabunda said they were analysing the inflow of the ZiG currency into the market before coming up with a fare for a single ride.
Intra-city public transport operators have been charging 10 rand for a trip while those paying in US$ were rated at US$1:15 rand although some operators are charging US$1 for two passengers.
“We are still following the inflows of the new currency, particularly the denominations that will be on the market,” said Mr Mabunda.
“We have to look at issues to do with ease of transacting, especially on change and things like that, so let’s see by tomorrow (Wednesday) how the new currency will be circulating, but we are also excited as the transport sector.”
Bulawayo Vendors and Traders Association executive director, Mr Michael Ndiweni, said ordinary people were looking forward to the new notes and coins.
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