Zimbabweans exclusively conducted transactions in United States dollars yesterday as the country embarked on the transition to a new currency following the introduction of the new gold-backed unit by the Reserve Bank of Zimbabwe (RBZ) on Friday.
Financial institutions and mobile money platforms initiated the conversion of customers’ Zimdollar balances into ZiG (Zimbabwe Gold) following the presentation of the Monetary Policy Statement (MPS) by RBZ Governor Dr. John Mushayavanhu.
Banks informed clients that their local currency accounts were being changed to ZiG and that Zimdollar transactions were suspended until further notice.
Consequently, all point-of-sale (POS) and mobile money platforms were inactive yesterday, with retail shops accepting only US dollars and Zimdollar notes.
The Bankers Association of Zimbabwe expects the reconfiguration of all Zimdollar accounts to be completed by tomorrow in most banks.
RBZ Governor Dr. Mushayavanhu announced last night that ZiG notes and coins were being produced and would enter circulation on April 30, 2024, following an intensive education campaign on their security features.
The public has 21 days to convert Zimdollar notes to ZiG, with an exchange rate of 2498.7242 ZW$ to 1 ZiG during this transitional period.
Electronic transactions for certain banks are expected to resume tomorrow as Zimswitch, the country’s electronic financial transactions settlement platform, adjusts its systems.
The RBZ has yet to set cash withdrawal limits to assess public reaction.
The gold-backed ZiG will be issued in various denominations and introduced gradually to cater to small transactions and ensure the availability of change.
In Harare, retailers are transacting exclusively in US dollars and Zimdollar notes, with many individuals caught off-guard by the currency changeover experiencing frustration.
Retailers are converting prices into ZiG and complying with the government’s directive to ensure a smooth migration process.
Banks are reconfiguring all Zimbabwe dollar accounts, with the process expected to be completed by tomorrow in most banks.
The introduction of ZiG is part of broader policy measures aimed at stabilizing the economy, curbing inflation, and addressing exchange rate volatility, replacing the rapidly depreciating Zimbabwe dollar with a currency backed by gold reserves and foreign currency held by the RBZ.
