daniel chigunwe
Business Writer
Zimbabweans eager to use the full range of the new ZiG currency will have to wait a little bit longer amid fears by the central bank that larger bills could be misused by illegal money traders.
In April, Zimbabwe transitioned from the Zimbabwe dollar (ZWL) to the ZiG to combat runaway inflation and rampant currency depreciation.
Coins and small bills (ZiG10 and ZiG20) have since been released with larger denominations promised to follow with the Reserve Bank of Zimbabwe preferring to drip-feed the market.
Despite public demand for higher-value bills rising RBZ Governor, Dr John Mushayavanhu believes a gradual release will prevent illegal money changers from exploiting them.
“What we have not been aggressive in putting into the market are larger denominations. These will be drip fed into the market as they are prone to being abused by illgal money changers,” said Dr Mushayavanhu.
He reassured the public that more ZiG cash is circulating compared to the old bond notes (ZWL).
“We have more ZiG cash in circulation than there was in bond notes.”
The current ZiG amount in circulation significantly surpasses the peak amount of ZWL ever available (0,07 percent).
Dr Mushayavanhu believes the market has enough small bills and coins to meet current needs. However, he identified an issue with coin distribution.
“People should request coins from their banks,” he said.
“Using exact fares, like 7 ZiG for transport, will help get them circulating more widely.”
Bongani Ndlovu