All government departments, agencies, and ministries will soon be required to accept ZiG payments, according to a statement made by Permanent Secretary George Guvamatanga of Finance, Economic Development, and Investment Promotion.
This instruction is being issued in the wake of Zimbabwe Gold, or ZiG, being officially adopted as the country’s currency as of April 8, 2024.
ZiG is supported by significant reserves, which include 2,522 kg of gold and over US$100 million in foreign exchange that the central bank owns.
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Despite these precautions, Zimbabweans have greeted the new currency with a great deal of suspicion, which is indicative of a pervasive lack of confidence in the Reserve Bank of Zimbabwe (RBZ).
The 2008 hyperinflation crisis, which resulted from the RBZ’s infamous printing of Z$10 trillion in notes, is the source of the pessimism.
He emphasized:
“The multi-currency regime was an agreed position between Government and industry and that is why industry is also using the US dollar as we speak today. So, in that journey, there will be a point where fuel will be fully sold in ZiG and all duties will be payable in ZiG.There shall be a point where all Government ministries, departments and agencies are forced to accept the currency. We are going to be forcing them very soon. We have not de-dollarised, and we are still in a multi-currency system. It is a journey.”
The Reserve Bank of Zimbabwe (RBZ) announced that motorists will not have immediate access to purchasing diesel and petrol using the new currency. This information was provided in a document addressing inquiries about ZiG. Additionally, the central bank clarified that ZiG is currently not internationally recognized and cannot be utilized for international transactions due to its lack of convertibility at this stage.
Guvamatanga’s announcement signals a concerted effort to establish ZiG as a legitimate and widely accepted currency within government operations. However, overcoming deep-seated skepticism and restoring public trust in financial institutions remains a significant challenge for Zimbabwe’s economic landscape.
At a Monetary Policy Statement breakfast meeting held in Harare on Tuesday 2024, Guvamatanga clarified that Zimbabwe has not de-dollarized and continues to operate under a multi-currency system