Zimbabwe has officially transitioned from the Zimbabwean Dollar (ZWL) to a new gold-backed currency, the Zimbabwe Gold (ZiG), with immediate effect.
The announcement comes a month after the Reserve Bank of Zimbabwe (RBZ) Governor unveiled the 2024 Monetary Policy Statement introducing the ZiG.
“The ZiG is a gold-backed currency that has been introduced as part of Government efforts to stabilise the economy, restore confidence in the financial system and provide a conducive business environment,” said Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, in a press release on Tuesday.
Ncube emphasised the government’s directive for all Ministries, Departments and Agencies (MDAs) and the private sector to accept ZiG as the official legal tender for all transactions.
“All Ministries, Departments, and Agencies (MDAs), and the private sector alike, are hereby advised to accept and recognise the ZiG as the official currency for all financial transactions, and payment for all goods and services, effective immediately,” he said.
The Minister further pledged the government’s commitment to a liberalised foreign exchange market where the ZiG’s value will be determined by market forces.
“To stabilise the value of the ZiG, the Government has introduced a liberalised foreign exchange market where the exchange rate is freely determined by the banking system based on demand and supply,” he explained.
“This is supported by a pool of gold and foreign exchange reserves at the RBZ which is more than adequate to back the local currency money supply in circulation.”
Ncube also announced plans to introduce regulations to ensure a single exchange rate is used for pricing goods and services.
“It should be noted that since the exchange rate is market determined, there is no basis for private and public organisations and economic agencies to use any other exchange rate in the pricing of their goods and services other than the prevailing average interbank foreign currency selling exchange rate as published by the Reserve Bank of Zimbabwe,” he added.
Seeking swift market adoption of the ZiG, the Ministry called upon all stakeholders to embrace the new currency.
“We call upon all MDAs and the private sector including retailers, and service providers to accept the ZiG in all financial transactions, including payments of salaries as well as for procurement,” Ncube urged.
“This collective effort will contribute to the smooth transition towards a more stable economic environment.”
He urged the media to play a role in promoting public awareness about the ZiG.
“We urge the media fraternity to support the Government by widely publicising the new currency in order to promote acceptance and adoption by the market,” Ncube said.
- Nehanda Radio
