Story by Owen Mandovha
BANKS and supermarkets have paused all Zimbabwe dollar denominated transactions and payments as they reconfigure their systems to the new Zig currency regime.
On Monday, all Zimbabwe dollar bank balances will be converted to the new Zig currency that was unveiled by the Reserve Bank of Zimbabwe on Friday.
As such, all banks and mobile money services providers have paused transactions in Zimbabwe dollars to allow for the changeover process to the new currency regime.
Simplifying the conversion rate that will be used, RBZ Monetary Policy Committee member, Mr Persistence Gwanyanya said a rate of 2500 will be used to divide all bank balances.
“The rate that will be used on Monday is 2500 which means that all bank balances will be divided by 2500. It is important to understand how this figure is derived. Remember 1 ZiG equals to 1 milligramme of gold which is equivalent to 7,793 cents which gives you a rate of 13,56 between 1 ZiG and US$1. Employing simple arithmetic using Friday’s spot interbank rate of 33093,99 that will give you a rate of 2500 between the ZiG and Zimbabwe dollar. The standard rate that will be used is 2500 so if one had let’s say 2 million dollars that means they will have 800 in their accounts. If you want to convert that into US dollars you divide 800 zig by 13,56 which is the exchange rate between ZiG and US dollar.”
Meanwhile, a survey conducted by the ZBC News crew also showed that retailers had also paused Zimbabwe dollar denominated transactions to reconfigure their operating systems to the new currency regime.
“Our members have paused trading in Zimbabwe dollars basically to transition to the new ZiG era. Therefore all sales are being conducted in foreign currency to await for the dispensation of the new currency and notes on Monday,” said The president of the Confederation of Zimbabwe Retailers, Dr Denford Mutashu.
Presenting the 2024 Monetary Policy Statement this Friday, Reserve Bank of Zimbabwe Governor, Dr John Mushayavanhu said he is ushering a totally new era of central bank management based on tight monetary policy, adding that he will refocus the bank in sticking to its core mandate by discarding quasi fiscal activities.
Dr Mushayavanhu said this stance will ensure that the new Zig currency will maintain its value, thereby creating a stable price and exchange rate environment.
