Artisan Turner Machinist (Chipinge)

Financial Accountant: Managerial Position (Harare)

Program Support Assistant (Bulawayo)

Sales & Marketing Officer: Grade 10 (Gweru)

Sales and Marketing Assistant (Harare)

The Ministry of Primary and Secondary Education has commended schools for embracing the Zimbabwe Gold (ZiG) currency for school fees payment after there was some resistance to the new currency during the first week of the current 2024 second term.
Director of Communications and Advocacy in the Ministry, Taungana Ndoro, told <a href="https://www.sundaynews.co.zw/schools-comply-with-ministerial-directive/">The Sunday News</a> that parents and guardians should be allowed to pay the whole amount in ZiG at the interbank rate on the day that the transaction is made. He said:
<blockquote>
The Government has always been clear that no school is allowed to refuse ZiG which is our local currency. All schools, Government and non-governmental are supposed to accept it if a parent comes and wants to pay with that currency.
If their fees are paid in United States dollars they should accept the ZiG currency at the interbank rate on the day that the transaction is made.
ZiG is a legal tender in the country and no school is allowed to charge school fees in USD only or to compel parents to pay 50 per cent USD and 50 per cent ZiG. No.
</blockquote>
Ndoro admitted that some schools have been resisting the government directive to accept ZiG and were only accepting USD payments. Said Ndoro:
<blockquote>
Yes, there were several schools during the first week of opening schools that were refusing to take ZiG and were only taking USD and we issued a directive and had a massive publicity campaign regarding compliance.
What we have noticed is that the response has been very impressive. Parents can pay with ZiG. We have not had as many reports as when the schools opened.
</blockquote>
Ndoro also revealed that the Government and its developmental partners have started rolling out the schools’ feeding programme nationwide.
He said the initial target is to feed three million learners but the number of beneficiaries will likely increase as the year progresses.
Ndoro was speaking at Tjingababili Primary School in Mangwe District during a media tour focusing on the critical linkages between climate change, water, sanitation, hygiene and nutrition organised by UNICEF.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Schools Complied With Ministry Directive On ZiG Payments - Ndoro

Business leaders and economists have criticised the government’s move to manipulate exchange rates thereby reintroducing price controls for all goods to slow down inflation.
The annual inflation rate increased to 57.5% in April, up from the previous month’s 55.3%.
In a move aimed at regulating the pricing of goods, the government recently imposed the Statutory Instrument 81A of 2024 which removed the 10% premium on forex sales.
As a result, all sellers of goods are now compelled to use the interbank selling rate or risk being fined at least ZiG200 000 penalty.
The president of the Confederation of Zimbabwe Retailers (CZR), Denford Mutashu has since written to the Minister of Industry and Commerce, Mangaliso Ndlovu, expressing concern over the contents of Statutory Instrument 81A of 2024. The letter, seen by <a href="https://businesstimes.co.zw/disquiet-over-price-controls/">Business Times</a>, reads in part:
<blockquote>
We are writing to express our strong concerns regarding Statutory Instrument 81A of 2024. While we understand the intention behind this instrument we believe that the current framework is not workable and requires significant adjustments to ensure its feasibility.
Our concerns are centred around the maximum exchange rate, which does not reflect a cost recovery exchange rate given the current circumstances.
Specifically, banks are currently charging clients a rate around 5% above the selling rate. This week, the banks have been selling at a rate of around ZiG14.70:US$1.
The new intermediate money transfer tax (IMTT) statutory instrument announced by the minister has increased the IMTT for forex (FX) purchases on the Willing Buyer, Willing Seller (WBWS) from 1% to 2%.
This is in addition to the 1% charged by the Reserve Bank of Zimbabwe (RBZ), taking the total cost for WBWS purchases to 3%. These costs add up to an average of 8% above the RBZ selling rate.
Furthermore, FX is not available on demand, and any time lag between receiving ZIG and purchasing FX on WBWS can result in losses for traders due to ZIG rate devaluation.
To make this SI workable and possible for players to comply, we recommend that the bank selling rates must not exceed the RBZ selling rate and that FX purchases from the WBWS must be exempted from IMTT.
</blockquote>
Mutashu also urged authorities to remove the RBZ’s 1% admin fee for WBWS purchases and to allow an additional 2% above the WBWS selling rate to account for ZIG rate volatility if these measures are not implemented. He added:
<blockquote>
SI 81A of 2024 will not be workable, and it will lead to a cat-and-mouse game between the regulator and businesses. We urge you to consider our concerns and recommendations to ensure a feasible and effective framework.
</blockquote>
Kurai Matsheza, the president of the Confederation of Zimbabwe Industries (CZI), said:
<blockquote>
In economics, there’s a law of demand and supply hence the government should follow that for the exchange rate to stabilise. Anything outside that will affect the economy.
</blockquote>
Economist Vince Musewe pointed out that the government is repeating mistakes by reintroducing price controls, which could lead to shortages and smuggling. He said:
<blockquote>
You cannot police market sentiment. The market is a beast that can only be tamed by building trust and confidence.
Price controls always create alternative market shortages and increased smuggling. We are not learning from history.
</blockquote>
Another economist, Tony Hawkins, said the threats of arrests and fines “confirm that nothing has changed”. He said:
<blockquote>
Next comes the shifting of goalposts with new SIs and additional ways of calculating inflation.
In this case, we have a new twist — the conversion of an already out-of-date national budget into zigs which will give Treasury lots of opportunities to switch spending and raise stealth tax revenues.
The next stage, as is happening now is threats, arrests and fines all of which confirm that nothing has changed.
How can it be a free market if anyone who trades on a willing buyer-willing seller basis is breaking the law unless he trades at the manipulated RBZ rate?
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Price Control Reintroduction Draws Criticism from Business Leaders and Economists

Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer, Chris Mugaga, said the reason businesses put a premium on the official exchange rate when setting prices was that there was no foreign currency readily available in the formal market.
In an interview with <a href="https://www.businessweekly.co.zw/no-mercy-for-violating-exchange-rate-treasury/">Business Weekly</a>, Mugaga said businesses are forced to source foreign currency from the black market because it is not available in the banks. He said:
<blockquote>
The reason why our constituency put premiums is that they have acknowledged that we cannot get (adequate) forex from the banks. If you go to the bank looking for forex you will not get it.
So, if you cannot get the forex from the banks, where else can you get it other than the black market?
Like it or not, the black market remains a major source of forex for most businesses.
</blockquote>
On Wednesday, Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, warned that businesses caught pricing their products or services using an exchange rate higher than the official rate risk severe penalties.
Responding to questions from legislators during a National Assembly sitting, Ncube said there is no longer any “basis” for shops to use any rate above the official rate after the government recently removed the legal provision allowing traders to put a 10 per cent margin above the ruling interbank exchange rate.
However, Mugaga argued that the stability of the ZiG currency counted for little as long as businesses struggled to secure foreign currency to import raw materials. He said:
<blockquote>
What the minister is saying does not define what is happening on the ground. What is happening is that if you go to the banks looking for foreign currency you are not able to get it.
If the minister wants a comprehensive approach, he must look at the whole supply and demand of forex.
If he considers only the stability of ZiG, he will be starting from the front end of the demand and supply chain.
</blockquote>
Some business executives say they are now allowed to price products at the exchange rate at which they would have purchased forex from their banks.
When contacted for comment by Business Weekly on the new position, Central Bank Governor John Mushayavanhu could only say “We will issue a statement to clarify.”
Zimbabwe’s economy is nearly 80 per cent dollarised and several businesses have also learnt to survive largely on their domestic foreign currency sales receipts, which they say remain inadequate to cover their needs.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Currency Scarcity Drives Premium Pricing, Says ZNCC CEO Chris Mugaga

The Government plans to extend a crackdown that’s targeting street currency traders to retailers (shops) to ensure goods and services are priced using only the official exchange rate of the new ZiG currency.
Responding to questions from legislators during a National Assembly sitting on Wednesday, Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, warned that businesses caught pricing their products or services using an exchange rate higher than the official rate risk severe penalties.
Ncube said there is no longer any “basis” for shops to use any rate above the official rate after the government recently removed the legal provision allowing traders to put a 10 per cent margin above the ruling interbank exchange rate. He said:
<blockquote>
We must protect our currency and keep it stable and discourage unnecessary speculation. The speculation is unjustified.
It is clear what the fundamentals are that drive value, that underpins the value of this currency and therefore it should be clear to everybody that this currency should be stable and an appropriate official exchange rate should be used for transaction purposes.
In our desire to protect that, Mr Speaker Sir, we are putting certain measures, certain sanctions on those who deviate from that objective.
First of all, for those who are managing retail or own retail organisations and sell goods to the public, we are insisting as a Government that they ought to use the willing buyer-willing seller price for foreign currency as the basis for pricing.
We have removed any basis to deviate officially from the official exchange rate, that 10 per cent exchange limit was causing deviation as an excuse for overpricing purposes.
So, from now on, we will make use of the willing buyer-willing seller pricing mechanism and any deviation will be sanctioned through a fine of no less than ZiG200 000 per offence.
So, those are really the measures we have put in place to deal with the pricing by retailers.
</blockquote>
The government gazetted Statutory Instrument 81A of 2024, Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024, last week.
S.I. 81A of 2024 scrapped the provision for a 10 per cent margin above the ruling exchange rate and also laid down the new requirement and the civil penalties that can be levied against defaulters.
Violation of the law now attracts a penalty of a minimum of ZiG200 000 per offence, and if the foreign currency taken in is higher in value, then the penalty equals that foreign currency.
According to <a href="https://www.businessweekly.co.zw/no-mercy-for-violating-exchange-rate-treasury/">Business Weekly</a>, traders and open market foreign currency dealers are pricing the local currency between ZiG17,5/US$1 and ZiG20/US$1.
According to the Reserve Bank of Zimbabwe (RBZ) website, the average interbank rate on 17 May 2024, was ZiG13.39/US$1.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Government To Extend ZiG Currency Crackdown To Shops

Zimbabwe is experiencing a serious cash shortage that was exacerbated by the introduction of a new currency, the Zimbabwe Gold (ZiG).
The shortage of cash is negatively affecting aggregate demand as the informal sector, which employs the majority of Zimbabweans, relies on cash.
The Reserve Bank of Zimbabwe (RBZ) started circulating ZiG notes and coins on 30 April, about three weeks after the ZiG replaced the Zimbabwe dollar, which had lost three-quarters of its value this year.
The cash crunch has hit various sectors including transport, supermarkets and the informal market, thereby disrupting business.
Speaking to <a href="https://www.newsday.co.zw/thestandard/business/article/200026796/cash-shortages-hit-zimbabwe">The Standard</a>, economist Gift Mugano, blamed the Central Bank’s “incompetence” for the cash shortage. He said:
<blockquote>
We do not have enough ZiG from the central bank. The size of the money supply is about ZiG90 million and the size of our economy is about ZiG20 billion.
So, the question is how does the government liquidate and expect to provide enough cash in the market when you have that small share of ZiG?
The central bank has not printed enough ZiG.
Last time I checked, they had printed small denominations and as a result, they have starved the market.
That’s a failure, so the bank must print enough ZiG currency and enough denominations for the market.
At this stage we should not be struggling to access ZiG just for change, it’s serious incompetence on behalf of the central bank.
</blockquote>
Mugano warned that the scarcity of the ZiG could lead to increased dollarisation. He said:
<blockquote>
Even the governor (John Mushayavanhu) is very clear in his monetary policy that he is pushing for banks to put certain liquidity into non-negotiable instruments so that they dry the market.
What he does not realise is that he is finalising dollarization, because if ZiG is not available, what is available is the US dollar.
So we are going to use foreign currency. He effectively brought small denominations and delayed the disbursement of large denominations.
</blockquote>
Another economist Prosper Chitambara, told The Standard that the shortage of cash could be a result of a deliberate approach by the RBZ to avoid introducing too much liquidity into the economy which could result in inflation. Said Chitambara:
<blockquote>
It could be a supply issue; the central bank did not print enough money.
Maybe they are trying to monitor the situation because you do not want to introduce too much liquidity in the economy; it can actually have a destabilising impact on the economy.
Of course, there is a strong demand for the ZiG, especially to facilitate change.
So obviously, we need to create that fine balance in terms of ensuring that there is enough supply of ZiG.
</blockquote>
Bankers Association of Zimbabwe chief executive officer Fanwell Mutogo said:
<blockquote>
Banks, typically order cash from the central bank based on the demand for cash they anticipate from their customers.
We are not sure which customers are affected.
Moreover, customers are encouraged to use digital means of transacting.
This is part of a broader push towards digitisation, which can help reduce the reliance on physical cash, improve efficiency, and potentially alleviate some of the issues related to cash availability.
</blockquote>
The ZiG is Zimbabwe’s sixth attempt to deliver a functioning local currency since 2008 when hyperinflation destroyed the Zimbabwe dollar (ZWD).
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cash Shortages Hit Zimbabwe, Economists Blame Central Bank

Local businesses are struggling to obtain foreign currency from banks to fund the procurement of inputs they require for production, a development that may result in the total rejection of the country’s new currency, the Zimbabwe Gold (ZiG).
ZiG was launched on April 5, 2024, to replace the Zimbabwe dollar but the new currency has struggled to find willing takers with most market players preferring to deal in foreign currency, mostly US dollars.
Currently, ZiG cannot be used to buy fuel, an imported commodity that requires foreign currency to purchase.
As reported by <a href="https://www.businessweekly.co.zw/businesses-struggle-to-get-forex-for-inputs/">Business Weekly</a>, Confederation of Zimbabwe Retailers president Denford Mutashu this week said that during a meeting to share notes with manufacturers recently, the producers said they were struggling to get from the banks the forex they need to procure inputs. Said Mutashu:
<blockquote>
The manufacturers, also, if you listen to their plight, it is realistic. Some manufacturers indicated that they are sitting on more than ZiG130 million, which they do not know what to do with because suppliers of raw materials are also demanding USD.
Someone indicated to me this afternoon that they also communicated with their bankers wishing to purchase foreign currency to import raw materials, but there have not been any favourable responses from the banks.
So I think that this whole matter (ZiG acceptance) rests with the Reserve Bank and the financial services sector.
There has gotta be a way to capacitate banks, lubricate banks, and oil banks so that they have sufficient foreign currency for supporting productive sectors.
</blockquote>
According to Business Weekly, a source revealed that despite the government’s claims that those in need of foreign exchange (forex) could obtain it from the interbank market, the actual situation on the ground indicated otherwise. Said the source:
<blockquote>
Banks have told businesses in no uncertain terms that they have no forex. There are more buyers than sellers on the willing buyer-will-seller market.
</blockquote>
Banks say the market has largely been dependent on export surrenders, but most exporters are holding on to their foreign currency, which explains the prevailing tight US dollar liquidity situation.
Bankers Association of Zimbabwe president Lawrence Nyazema said “RBZ has started selling reasonable amounts to banks against submitted pipelines, (but) customers with ZiG loans are disqualified, according to the rules.”
He, however, noted that there have been some improvements in the supply of forex over the last couple of weeks.
Farai Mutambanengwe, an economist and the Small and Medium Enterprises Association of Zimbabwe chief executive said:
<blockquote>
I think there is a lot of confusion in the market. When it was initially pronounced, we were told it (ZiG) was backed, (including with US dollars), but now it turns out that you cannot get US dollars at the bank even if you have ZiG.
Also, those people who were in the foreign exchange queue, for their ZWL have been converted into Treasury Bills. When you then force people to accept ZiG it will not work. Some players are now stuck with the ZiG…
People will not accept ZiG because they do not understand what it is worth.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Industry Sitting On Millions Of ZiGs, Banks Don't Have Forex For Inputs

Zimbabwean academic, financial analyst, and economist, Gift Mugano, has warned that goods will disappear from supermarket shelves after the government introduced rules making it mandatory for businesses to use the fixed exchange rate.
On Thursday, 09 May, the Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, gazetted Statutory Instrument 81A of 2024 which penalises individuals and companies charging prices above the prevailing official foreign exchange rate.
The official exchange rate in the economy is set daily by the Reserve Bank of Zimbabwe (RBZ).
Offending firms and individuals will be fined ZiG200 000, but if the foreign currency taken in is higher in value, then the penalty equals that foreign currency.
Furthermore, the 10 per cent premium that retailers were allowed on the official exchange rates between foreign currency and the ZiG has now been abolished.
Responding to the developments, Mugano said Statutory Instrument 81A of 2024 “will definitely kill the formal businesses”. He wrote on X (formerly Twitter):
<blockquote>
The New Amendments to the Exchange Control is a total disaster!
Goods will disappear from the formal sector and appear in the informal sector! Unfortunately, GOZ can’t regulate or enforce compliance in the informal sector because it’s gigantic &amp; stubborn.
This gives the informal sector latitude to set own informal rules and disregard government policies/regulations.
The informal sector has the flexibility to operate at competitive exchange rates/black market rates which will definitely kill the formal businesses.
The irony is that we have been on this road before and it didn’t work! GOZ must develop a culture of carrying out impact assessments of its policies and come up with improved policies.
The informal sector is a menace and fluid – we must apply critical thinking not emotions if we are to redirect the economy on the right path.
In my previous instalments, I proffered solutions which GOZ must consider to save the ZiG but authorities ignored the advice.
It is high time that we undertake a comprehensive assessment of the root causes of our economic problems. We must never be prescriptive.
At the moment I humbly suggest that authorities stop issuing press statements and statutory instruments because it is not taking us anywhere.
Let us undertake a 360-degree investigation of our economic crisis and come up with comprehensive solutions which must include political remedies!
Otherwise, we are going nowhere.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Penalising Companies For Charging Prices Above Official Forex Rate Will Kill Formal Businesses - Mugano

The Zimbabwe Government will penalise individuals and companies charging prices above the prevailing official foreign exchange rate.
The official exchange rate in the economy is set daily by the Reserve Bank of Zimbabwe (RBZ).
Offending firms and individuals will be fined ZiG200 000, but if the foreign currency taken in is higher in value, then the penalty equals that foreign currency.
Furthermore, the 10 per cent premium that retailers were allowed on the official exchange rates between foreign currency and the ZiG has now been abolished.
The changes were made through Statutory Instrument 81A of 2024, Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024, gazetted on Thursday, 09 May. Reads the Statutory Instrument:
<blockquote>
Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024
THE Minister of Finance, Economic Development and Investment Promotion, in consultation with His Excellency the President, in terms of section 11(2) of the Exchange Control Act [Chapter 22:05], hereby makes the following notice: —
Title
1. This notice may be cited as the Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024.
Substitution of Paragraph 2(12)
2. Paragraph 2 (“Power of Reserve Bank to issue civil penalty order”) of the Schedule (“Civil Penalty Orders”) to the Exchange Control Act [Chapter 9:23] is amended by the repeal of subparagraphs (12) and (13) and the substitution of the following subparagraphs —
“(12) A natural or legal person shall be guilty of a civil infringement if he or she, being a seller of goods or services, offers such goods or services at an exchange rate above the prevailing average interbank foreign currency selling rate published by the Reserve Bank of Zimbabwe.
(13) In the event of default in complying with subparagraph (12), the civil penalty shall provide for-
(a) a combination of-
(i) a fixed penalty of two hundred thousand ZiG or an amount equivalent to the value of the foreign currency charged for the goods or services in question (whichever is the greater amount); and
(ii) a cumulative penalty over a period not exceeding ninety days of five per centum of the outstanding amount of the fixed penalty for each day (beginning on the day after the service of a civil penalty order) that the fixed penalty or any outstanding amount thereof remains unpaid by the defaulter;
(b) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its issuance to enable the alleged defaulter to show cause to the designated officer why the order should not have been issued:
Provided that-
(i) if no such cause is shown within that period the order shall be deemed to have been issued with effect from the beginning of such period;
(ii) if within that period, good cause is shown why the order should not have been issued, the designated officer shall withdraw the order and make the appropriate notation of withdrawal in the civil penalty register.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe To Impose Fines On Companies Not Using Official ZiG Exchange Rate

The Consumer Council of Zimbabwe (CCZ) says the new ZiG currency has brought more “challenges” for consumers than those they faced before its introduction.
The ZiG, short for Zimbabwe Gold, was launched on 5 April and succeeded the Zimbabwean dollar (ZWL), which had lost 80% of its value this year.
In an interview with <a href="https://www.newsday.co.zw/business/article/200026667/zig-brought-more-misery-for-consumers-ccz">NewsDay</a>, CCZ chief executive officer Rosemary Mpofu said people are failing to use the ZiG outside the formal retail sector. She said:
<blockquote>
As the Consumer Council of Zimbabwe, we were delighted when we heard that we are going to have a currency backed by gold reserves announced by the governor of the Reserve Bank of Zimbabwe.
We were very excited because we heard the country had enough gold to back the new Zimbabwe Gold currency.
We very much believed that when the currency is backed by gold and other commodities, it would give more value to our currency.
With that being said, as consumers, we are facing several challenges, which have resulted in us failing to easily accept the new currency.
These challenges have greatly impacted the acceptance of the new local currency by consumers in the country.
It seems the new currency has brought us more challenges than those we faced before the introduction of the Zimbabwe Gold currency.
</blockquote>
Mpofu said kombi operators, who used to accept the bond notes, were not eager to accept the new currency and were doubling fares due to a shortage of change. She said:
<blockquote>
When boarding public transport on our everyday normal routes, we see that on the same route that we used to travel using US$0,50, we are being charged US$1 because of change challenges.
Sometimes we are forced to buy things that we do not want just for us not to leave our money with public transport operators. The same route that I used to travel using US$1, to and from, the price has doubled.
</blockquote>
Mpofu also highlighted that some traders and service providers such as schools and fuel service stations were rejecting the ZiG. She said:
<blockquote>
It was announced recently that consumers are now able to buy fuel in local currency and Zera announced the ZiG prices for fuel.
However, we have not seen any fuel station that is accepting ZiG in exchange for fuel.
We did a survey and also consulted with ZERA [Zimbabwe Energy Regulatory Authority] and we discovered that so far, no fuel station is accepting ZiG.
So far, the only place we can use the ZiG currency is in the supermarkets. Why are the service providers rejecting the ZiG currency?
</blockquote>
Mpofu appealed to authorities to continue arresting illegal money changers and ensure that service providers and traders use the official exchange rate at all times.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Brought More Challenges For Consumers - CCZ

Finance, Economic Development and lnvestment Promotion Minister, Mthuli Ncube, said he doesn’t understand why fuel dealers refuse to accept ZiG as payment for their products.
Appearing before joint parliamentary portfolio committees on budget and finance as well as industry and commerce on Tuesday, Ncube said some businesses were still in the transition from ZWL to ZiG but will soon accept the new currency without difficulty. He said (<a href="https://www.zimlive.com/article/finance-minister-says-vexed-by-snubbing-of-zig-by-fuel-dealers/">via ZimLive</a>):
<blockquote>
I don’t know why they don’t accept ZiG. We are in a multi-currency regime; they ought to accept if a buyer of fuel wishes to pay in ZIG.
This issue of transition from a volatile Zimbabwean dollar to a stable ZiG will take time for people to get their heads around it but with time, they will accept ZiG without difficulty. They should accept ZiG.
</blockquote>
Ncube said the Treasury and the Central Bank will continue to encourage the acceptance of the ZiG by the local market.
He said authorities “will search low and high” for measures to ensure that businesses and traders accept the new currency.
The ZiG is the country’s sixth attempt to deliver a functioning local currency since 2008.
<div class="in_article">
<div>
Authorities say the currency is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank.
</div>
</div>
The Government has come under criticism for offering some of its services exclusively in foreign currency.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli "Doesn't Know" Why Fuel Dealers Don't Accept ZiG

<h2>Statement by the Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube on the transition from ZWL to the new currency Zimbabwe Gold (ZiG) and measures to promote market adoption and acceptance:</h2>
<blockquote>
The Ministry of Finance, Economic Development and Investment Promotion is pleased to announce the transition from the Zimbabwean Dollar (ZWL) to the new currency, the Zimbabwe Gold (ZiG), following the recent announcement of the 2024 Monetary Policy Statement by the Governor of the Reserve Bank of Zimbabwe (RBZ) on the 5th of April, 2024.
Statutory Instrument 60 of 2024, Presidential Powers (Temporary Measures) legalised and operationalised the new currency, thus Government and banks immediately started transitioning to these new currency arrangements.
As Government continues to configure its Public Finance Management System (PFMS) to facilitate revenue collection and payment for goods and services in local currency, 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.
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.
In order to stabilise the value of the ZiG, Government has introduced a liberalised foreign exchange market where the exchange rate is freely determined by the banking system based on demand and supply.
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.
The availability of such reserves will ensure that all bonafide and legitimate requests for foreign exchange made through the banking system will be fully satisfied.
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.
To ensure orderly pricing, Government will soon be introducing the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services.
In light of this, the Ministry emphasises the urgency and importance of a swift transition and market adoption of the ZiG by all stakeholders.
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. This collective effort will contribute to the smooth transition towards a more stable economic environment.
Furthermore, unless there is specific legislation allowing charges or fees to be collected in USD only, all collections by Government and the private sector shall be made in ZiG or any of the currencies in the multi-currency basket without insisting on a specific type of currency or indexing invoices to the USD.
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.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mthuli Urges Govt Ministries, Departments, Private Sector To Accept ZiG

Zimbabwe’s new currency, Zimbabwe Gold (ZiG), on Monday, 06 May, weakened to its lowest level against the US dollar since it was launched last month, further raising concerns about the long-term viability of the gold-backed currency.
Data by the Reserve Bank of Zimbabwe (RBZ) yesterday shows the currency was trading at 13.67 to the US dollar, a decline of 0.8% from its first day of trading at 13.56 per dollar on April 8.
Crispus Nyaga, writing for <a href="https://invezz.com/news/2024/05/07/usd-to-zig-heres-why-the-zimbabwe-currency-is-crashing/">invezz</a>, outlines several factors that contributed to ZiG’s decline. He wrote:
<blockquote>
First, many Zimbabweans are afraid of getting involved in this experiment since they have been burned before. People and businesses that bought and held the previous currencies have seen their purchasing power fall over the years.
Second, this is an experiment that has not been tried in other countries before. The most recent dollar-backed currency was the US dollar. President Richard Nixon ended the dollar peg to curb inflation and the conversion became difficult.
In ZiG’s case, it is unclear what will happen if there is a strong demand for the currency. At the current price, the 2.5 tons of gold are worth over $186 million, bringing the total holdings to $286 million. These funds are barely enough to back the currency.
Third, the ZiG token is different from other backed assets, including stablecoins. In the case of a stablecoin like Tether, users redeem their USDT tokens with fiat currency instantly. It is not possible to redeem any amount of ZiG tokens for gold or US dollar equivalent.
It is also unclear whether Zimbabwe’s neighbouring countries like South Africa, Zambia, and Mozambique will accept the ZiG currency.
Finally, Zimbabwe is mostly a dollar-based economy. Data shows that the greenback is used in over 80% of all transactions in the country. 
</blockquote>
Last month, the Central Bank said ZiG was not yet recognised internationally and could not be used to make international payments as it has not yet achieved convertibility. It said:
<blockquote>
ZiG is a local currency that has just been launched and has not yet achieved convertibility. The Bank will work to strengthen the currency to attain full convertibility, consistent with the regional agenda for macroeconomic convergence under the SADC Protocol on Finance and Investment.
</blockquote>
ZiG replaced the Real Time Gross Settlement Dollar (RTGS) and subsequently the Zimbabwe dollar, which lost about 80% of its value this year alone and had been trading at 28,720 to US$1 before the change.
It is Zimbabwe’s sixth attempt to have a stable currency. The previous Zimbabwe dollar was launched in 2019 and collapsed this year.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Here’s Why The ZiG Currency Is Weakening

Zimbabwe’s currency, Zimbabwe Gold (ZiG), on Monday, 06 May, weakened to its lowest level against the US dollar since it was launched last month, reported <a href="https://www.bloomberg.com/news/articles/2024-05-06/-zig-usd-zimbabwe-s-zig-slips-to-lowest-since-launch-sheds-0-8-to-dollar">Bloomberg</a>.
According to data posted on the Reserve Bank of Zimbabwe’s website, ZiG was trading at 13.67 to the dollar, a decline of 0.8% from its first day of trading at 13.56 per dollar on April 8.
The ZiG is the country’s sixth attempt to deliver a functioning local currency since 2008.
Authorities say the currency is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank.
In an interview with Bloomberg on May 2, the Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube said that the government will seek full convertibility of the unit at some stage to further boost its appeal.
RBZ Deputy Governor Innocent Matshe was reported as saying the first steps of achieving convertibility may include engaging with Zimbabwe’s largest trading partners to accept payment in the new currency.
South Africa is Zimbabwe’s largest trading partner and accounted for almost 35% of exports in March. Mozambique and Zambia, which are also Zimbabwe’s neighbours, are other key trading partners.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Records Its Largest Decline Since Launch

Kombi operators in Bulawayo have backtracked on refusing ZiG, saying are accepting the new structured currency for fares.
Last week, the same commuter omnibus operators stated that accepting ZiG would put them out of business as they cannot use the currency to buy fuel or spares for their vehicles.
However, Tshova Mubaiwa’s marketing director, Ndaba Mabunda, told the <a href="https://www.chronicle.co.zw/commuter-operators-welcome-zig/">Chronicle</a> that they are accepting ZiG. Said Mabunda:
<blockquote>
There is no way we are denying the ZiG. The announcement by ZERA also shows commitment and interest by authorities to balance the equation.
Transport operators also use the ZiG to purchase other goods and services other than fuel. ZiG is our national currency and accepting it must never be an option.
</blockquote>
Bulawayo Urban Public Transport Association (BUPTA) chairperson, Morgan Msipa, said they are accepting ZiG. He said:
<blockquote>
It might improve our lives. We have issues of lack of change and we hope that once the money is in circulation it can be a thing of the past.
Let me make it clear that we are not saying no to the ZiG. We had concerns about fuel stations not accepting it.
</blockquote>
On 04 May, the Zimbabwe Energy Regulatory Authority (ZERA) issued a fuel review notice indicating prices of petrol and diesel in both USD and ZiG.
However, this does not necessarily mean that fuel is now being sold in ZiG because ZERA has always done the same for Bond Notes even when they were not accepted at the fuel pump.
According to the notice, diesel now costs ZiG22.24 and US$1.66, while petrol is now selling at ZiG21.15 and US$1.58 per litre respectively.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Bulawayo Kombi Operators Backtrack On ZiG

The Reserve Bank of Zimbabwe (RBZ) is set to release the new ZiG20 notes into circulation this week following the rollout of lower denomination ZiG notes and coins ranging from ZiG1 to ZiG10 on Tuesday last week.
Speaking to State media on Saturday, RBZ Governor John Mushayavanhu said that ZiG20 banknotes will be released this week followed by other higher denominations later. <a href="https://www.sundaynews.co.zw/new-zig-denominations-out-this-week/">He said</a>:
<blockquote>
ZiG notes and coins have been widely accepted. The introduction of coins has alleviated the problem of change, especially for commuters.
ZiG20 notes will be introduced next week (this week), after which other denominations will follow.
</blockquote>
The ZiG notes and coins, which range from ZiG1 to ZiG200, as well as the electronic ZiG, are backed by gold, other precious minerals and foreign currency reserves.
Presenting the Monetary Policy Statement (MPS) on 05 April, Mushayavanhu said the Central Bank had in its reserves US$100 million in foreign currency and 2,5 tonnes of gold valued at US$185 million to back the new currency.
The ZiG currency replaced the Zimbabwe dollar, whose value had been eroding rapidly since the start of the year.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Says To Introduce New ZiG Denominations This Week

Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has backtracked on his initial assertion that he did not know much about structured currency and engaged a World Bank consultant before introducing the new ZiG currency.
Responding to questions from the floor during a business meeting organised by the Zimbabwe National Chamber of Commerce (ZNCC), Masvingo chapter on Friday, 03 May, Mushayavanhu said ZiG will not fail as it was not imposed on the market, but a well-thought-out and purely Zimbabwean idea. He said (<a href="https://www.herald.co.zw/zig-a-product-of-consultation-wont-fail/">via The Herald</a>):
<blockquote>
No one told us to introduce the ZiG currency, of course, when doing something, one might seek for ideas and advice from others just to fine-tune but it does not mean that if you consult on something you want to do, it means you did not originate it.
We consulted widely yes, but ZiG is my product as the Governor of the Reserve Bank and if it fails it’s my fault; it’s my brainchild.
</blockquote>
Mushayavanhu said he started mulling the idea of introducing the ZiG currency in September last year when President Emmerson Mnangagwa revealed to him that he would be the next RBZ Governor. He added:
<blockquote>
If at all it fails, but I don’t see the reason why the ZiG should fail and it will not fail; but in the unlikely event that it fails, then it’s entirely our responsibility as Zimbabweans and my responsibility as Governor of the central bank.
ZiG is a Zimbabwean-born currency, it’s a Zimbabwean product made by Zimbabweans, myself included.
</blockquote>
He said the reserves backing the currency, including gold and other precious minerals and cash reserves, would be subjected to an independent audit every year.
The results of the audit will be declared publicly while the auditors will also be allowed to express their opinions on the state of affairs as a way of building confidence in the new currency, Mushayavanhu said.
He warned those selling their goods and services using the ZiG black market rate, especially pharmacies, that they were breaking the law.
Mushayavanhu urged citizens to report such culprits to the Financial Intelligence Unit (FIU) so that action is taken against them. He said:
<blockquote>
The onus is on the members of the public to report those who are pegging the US$ to the ZiG black market rate to the FIU because the businesses that are doing that are acting illegally and they will be heavily fined that it will almost be impossible to continue doing that.
</blockquote>
The Central Bank chief said those who genuinely need foreign currency to pay for things like school fees and medication, among others, would get the money from their banks.
He, however, said people cannot simply walk into banks with their ZiG to exchange it for US dollars on the counter saying doing so will be as good as dollarising.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG Is My Brainchild, Blame Me If It Fails - Mushayavanhu

The World Bank has refuted claims that it played a key role in the conception and launch of Zimbabwe’s new currency, the Zimbabwe Gold (ZiG).
Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu recently revealed that Zimbabwean authorities did not know much about structured currency and engaged a World Bank consultant before introducing ZiG.
But speaking to The NewsHawks, the World Bank stated that it only offers policy advice to member states, which then make the final decisions on policy implementation. The bank said:
<blockquote>
We are committed to supporting the government of Zimbabwe in its efforts towards the country’s economic recovery.
This aligns with our goal to create a world free of poverty on a livable planet. This support includes technical expertise and in-depth research and analysis on sectors, such as the latest Zimbabwe Economic Update.
It also includes perspectives on policy and development challenges at the request of clients. Governments tailor this advice to their contexts and ultimately make the final decisions on policy implementation in their countries.
</blockquote>
During an address to business executives soon after the launch of ZiG, Mushayavanhu said the World Bank was instrumental in the introduction of ZiG.
He said he was not to blame for ZiG’s perceived shortcomings, adding “So, if you’re going to blame me, you’re actually blaming the World Bank.” He said:
<blockquote>
We didn’t know much about structured currency. We got a consultant from the World Bank. A lot of the things you’re seeing about the structured currency actually came from the World Bank. So, if you’re going to blame me, you’re actually blaming the World Bank.
Maybe they didn’t advise us properly. And if they did not advise us properly, it’s fine. Let’s refine it.
</blockquote>
Mushayavanhu, has, however, since backtracked from his claims, saying ZiG was a well-thought-out and purely Zimbabwean idea.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

World Bank Distances Itself From Zimbabwe’s New Currency, ZiG

Schools are refusing to accept the recently introduced Zimbabwe Gold (ZiG) currency and demanding payment of full fees in foreign currency.
ZiG has been widely accepted by major supermarkets but the government’s failure to compel fuel service stations to sell their products in the local currency will be used to justify the rejection of the structured currency by some service providers.
ZiG is circulating in a basket of currencies, and therefore a legal tender but citizens cannot apply for passports using the local currency.
According to <a href="https://www.manicapost.co.zw/schools-reject-zig-payments/">The Manica Post</a>, this week most schools in Manicaland Province were turning away parents and guardians who wanted to pay fees and levies in local currency.
The schools were claiming that they were yet to synchronise their transaction systems with the new ZiG currency.
The claim, however, does not make sense as most fees are paid through banks whose systems have already been configured and calibrated to the new currency.
Some of the schools were advising parents that they will only accept the new currency when they reopen. This is the same strategy they used during the RTGS era, hoping that the interbank bank rate would have gone up.
Parents who were making payments in foreign currency were readily served.
The Manica Post further reported that boarding schools in the province were demanding fees and levies exclusively in foreign currency.
Director of communications and advocacy in the Ministry of Primary and Secondary Education, Taungana Ndoro reiterated the Government’s position that parents have the freedom to pay in a currency of their choice (forex or ZiG). Said Ndoro:
<blockquote>
As schools prepare to reopen on May 7, 2024, the Ministry of Primary and Secondary Education would like to reiterate an important policy regarding school fees payment.
According to Secretary’s Circular No. 10 of 2022, Government’s position is that school fees should be paid in the local currency, which is now referred to as ZiG.
It is essential to note that no school should compel parents to pay fees or levies exclusively in foreign currency as Zimbabwe operates under a multi-currency regime. Parents have the freedom to pay in a currency of their choice.
In cases where fees are pegged in foreign currency for value preservation purposes, parents can make their payments in the local currency at the prevailing interbank rate of the day of the transaction.
This ensures that the fees are appropriately converted into any currency equivalent. The Ministry of Primary and Secondary Education emphasizes compliance with this policy to ensure fairness and flexibility in fee payments for all parents and guardians.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Schools Reject ZiG Payments

Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu on Thursday made a U-turn on the phasing out of Zimbabwe dollar notes saying they remain legal tender until further notice.
When he launched the new currency, Zimbabwe Gold (ZiG) on 5 April 2024, Mushayavanhu said the “bond notes” would be phased out by the end of that month and he gave citizens 21 days to convert them to ZiG.
However, in an interview with StarFM, Mushayavanhu said the bond notes will remain in use, co-circulating with ZiG notes indefinitely. He said:
<blockquote>
We are currently allowing them (bond notes) to co-circulate. And we will let the market know when the volumes of bond notes coming through have thinned out.
We will then advise a date to say, “After such and such a date, we will no longer be accepting bond notes”.
But for now, let them come through. We don’t want a situation where someone is sitting on bond notes and they are deep in the rural areas.
</blockquote>
The Central Bank chief added that the RBZ wants to collect as many ZWL notes before giving “a final deadline.”
The bond notes, which are in ZWL$100 denominations, will co-exist with ZiG, whose notes came into circulation on Tuesday, 30 April.
Coins and the ZiG10 were released first and have since been accessed by the public but are yet to fully address the problem of change.
Citizens have criticized authorities for not thoroughly considering their policies before implementation. When Mushayavanhu announced that the Zimbabwe dollar would no longer be legal tender after 21 days, traders promptly began rejecting bond notes.
Consequently, consumers faced challenges purchasing items priced below US$1 and obtaining change, as bond notes were mainly used for smaller transactions.
Furthermore, the RBZ announced the introduction of a new currency but did not avail coins and notes, and citizens endured nearly a month of waiting before receiving the new currency in physical form.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Backtracks On Phasing Out Bond Notes

President Emmerson Mnangagwa has praised Zimbabweans for embracing Zimbabwe Gold (ZiG), saying that the new currency symbolizes the nation’s identity and dignity.
Speaking at the burial of three national heroes: Nyasha Dzimiri, Brigadier General (Rtd) Shadreck Vezha and Tsitsi Jadagu at the National Heroes Acre on Monday, 29 April, Mnangagwa said:
<blockquote>
I commend all Zimbabweans for the manner we have adopted and are protecting the use of our own currency, the Zimbabwe Gold (ZiG). Congratulations, Makorokoto Zimbabwe. This is our national currency and part of the symbols of our national identity and dignity.
</blockquote>
ZiG notes and coins are expected to hit the streets this Tuesday, with cash withdrawal limits set at ZiG3 000 for individuals and ZiG30 000 for corporates.
The new currency was introduced on 05 April 2024 to replace the Zimbabwe dollar (RTGS and bond notes), which has been rapidly depreciating against major currencies since the beginning of the year.
The RBZ says it has in its reserves US$100 million in foreign currency, and 2,5 tonnes of gold valued at US$185 million.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mnangagwa Commends Zimbabweans For Embracing ZiG Currency

The recent launch of the Zimbabwe Gold (ZiG) currency by the Reserve Bank, backed by gold and other precious metals, along with foreign currency reserves, has provided scant relief for long-suffering consumers who continue to grapple with price increases.
ZiG is already circulating on the market electronically, but the release of banknotes and coins, preferred by the majority of traders who don’t have bank accounts, was delayed by 21 days.
The RBZ has pledged to drip-feed the notes and coins into the market starting on 30 April 2024.
According to a <a href="https://www.newzimbabwe.com/zimbabweans-short-changed-as-zig-new-currency-resistance-grows/">NewZimbabwe.com</a> report, shops across the country favour the US dollar for transactions, with some linking ZiG prices to the volatile street rate.
Some retailers especially the major retail chains are displaying prices in both USD and ZiG dollars at the official exchange rate, while others are pegging prices using illegal exchange rates.
The official interbank rate stands at US$1: ZiG13.44 but some retailers are transacting using rates as high as ZiG19.00.
According to a snap survey carried out by NewZimbabwe.com, at Gain Cash and Carry, owned by National Foods, a 10-kilogram packet of mealie meal was priced at ZiG107 while in US$ it was being sold at US$6.20.
The same product at TM Pick n Pay was selling at US$6.97 while in local currency it had been pegged at ZiG92.70
Mohammed Mussa displayed signage accepting the local currency but reportedly refused to accept the transactions at till points.
A cashier at one of the four operational tills said the system had been down since Thursday morning. On Friday morning and later in the afternoon, the system “was still down.”
However, an unsuspecting worker at the wholesaler told the publication that they were yet to accept ZiG currency payments. Said the employee:
<blockquote>
Pafeya chaipo muno ZiG haritodiwe. Kungoisawo hedu notice incase law enforcement agents walk in. (To tell you the truth, we are only displaying as you can see but ZiG is not accepted here. But you can go to the cashiers and ask).
</blockquote>
This practice by unscrupulous businesses leaves many Zimbabweans, who earn their salaries in local currency (wholly or in part), at a disadvantage.
Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu advised consumers to report to authorities when shops reject ZiG or use street rates. Said Mutashu:
<blockquote>
The issue is sometimes we don’t even have airtime to call authorities. It will be a huge sabotage if any retailers are breaching the law, it is not nice and of course, we can always tip law enforcers.
So far, I have not used ZiG myself so I’m not very sure about the situation unfolding on the ground.
</blockquote>
Rosemary Mpofu, the chief executive officer of the Consumer Council of Zimbabwe (CCZ), said:
<blockquote>
CCZ is always in constant engagement with government especially on topical consumer issues. Our recent survey has observed that the big retail outlets have aligned with exchange rate requirements.
However it is the small retailers and tuckshops that continue to shortchange consumers through speculative tendencies, and they have been doing this even before the introduction of ZIG.
In that respect, we continue to engage government to enhance the enforcement aspect, further to that, CCZ continues to educate consumers on shopping tips and avoid service providers that use exorbitant rates.
We also recommend stiffer penalties or revoking licenses for those promoting speculative tendencies.
</blockquote>
The government has previously warned retailers against such practices, and the Financial Intelligence Unit (FIU) says it has frozen the bank accounts of 11 entities for refusing to trade in ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabweans Short-changed As Resistance To ZiG Persists

A private school in Harare, Westminster International School, has allegedly pegged the rate of one US dollar at ZiG23, way above the official US$1: ZiG 13.44 as of Monday, 29 April.
According to <a href="https://www.hmetro.co.zw/city-school-pegs-one-usd-at-23-zig/">H-Metro</a>, the private college was exchanging one US dollar at ZiG23 last week and made it clear it could change. Last week the official rate was US$1: 13.56 ZiG.
Parents, who are paying their fees for the second term, have been asked to pay the fees either in US dollars or the local currency.
However, the local currency fees, when converted, show that the school is using a rate which is not the official one.
Those who are paying in USD will have to fork out US$1 818, and those who choose to pay in ZiG will have to fork out ZiG 41 814. This should have been 24 652 ZiG if the school was using the official rate.
One parent who spoke to H-Metro appealed to the Government to intervene and ensure that the school uses the official rate. Said the parent:
<blockquote>
We are being robbed. The school is not being considerate, their charges are already high and they are now adding salt to the wound by using black market rates.
We are appealing to relevant authorities for protection for us not to be fleeced.
</blockquote>
When H-Metro reporters visited the school, security guards reportedly denied the newspaper entry into the premises, but some parents, who were making payments, were allowed to enter.
Reserve Bank of Zimbabwe Governor John Mushayavanhu launched ZiG on 05 April 2024, but the new structured currency has faced resistance from some quarters who fear it is the bond note by another name.
The Consumer Council of Zimbabwe (CCZ) recently said the government should take the lead in accepting payment in ZiG. It stated that government departments, including passport offices, fuel stations, and tax authorities, should demand payment in ZiGs.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Private School Pegs US$1 At 23 ZiG | Report

The Reserve Bank of Zimbabwe (RBZ) has set the weekly cash withdrawal limits at ZiG3 000 for individuals and ZiG30 000 for corporates.
Central Bank Governor John Mushayavanhu said the bank will begin distributing the ZiG banknotes and coins to commercial banks tomorrow (Monday).
Members of the public will start withdrawing cash from their accounts on Tuesday, 30 April 2024.
In an interview with <a href="https://www.sundaymail.co.zw/weekly-zig-withdrawal-limit-set">The Sunday Mail</a> on Saturday, Mushayavanhu said the RBZ has already communicated with banks on the cash withdrawal limits. He said:
<blockquote>
All banks will start collecting cash from the Reserve Bank of Zimbabwe on Monday (tomorrow).
We have since communicated with them, including giving them a communiqué on the cash withdrawal limits.
Banks have already been advised on the maximum limits for withdrawal by individuals, corporates, schools and Government.
</blockquote>
The RBZ’s Financial Intelligence Unit (FIU) issued a directive to local banks dated April 10, advising them about the cash withdrawal limits. It reads in part:
<blockquote>
In view of the introduction of the new structured currency, ZiG, through the Reserve Bank Governor’s Monetary Policy Statement on April 5, 2024, the following ZiG cash withdrawal limits shall apply.
Individuals: ZiG3 000; corporates: ZiG30 000; schools, hospitals, clinics and local authorities: ZiG250 000 (monthly); Government ministries and departments ZiG300 000 (monthly).
</blockquote>
The directive did not limit cash withdrawals by Parliament, courts and international organisations.
It says withdrawal limits for United States dollar accounts remain unchanged. Reads the directive:
Banks are required to undertake due diligence when processing cash requests for customers to ensure the facility is not used for criminal activities.
Where a customer has a valid need to withdraw cash above the stipulated limit, the bank shall continue to submit such an application to the FIU, clearly setting out the special grounds for the request.
The FIU will not grant any such requests unless satisfied that no other forms of payment are reasonably available to the customer.
The RBZ previously stated that the ZiG notes and coins will be drip-fed into the market in denominations ranging from ZiG1 to ZiG200.
The ZiG coins will be issued in denominations of one ZiG, two ZiG and five ZiG. ZiG banknotes are denominated in 10ZiG, 20ZiG, 50ZiG, 100 ZiG and 200 ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Sets ZiG Withdrawal Limits

Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, has gazetted the features of the Zimbabwe Gold (ZiG) coins, whose circulation is expected to start on 30 April 2024.
The ZiG currency was introduced by Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, when he presented his first Monetary Policy Statement on April 5 2024.
The features are contained in Statutory Instrument 75 of 2024 cited as the Reserve Bank of Zimbabwe (Issue of ZiG Coins) Notice, 2024.
The ZiG coins will be issued in denominations of one ZiG, two ZiG and five ZiG. Reads the notice:
<blockquote>
It is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 44 D (2) of the Reserve Bank of Zimbabwe Act made the following notice specifying the matters determined by the President.
The design of the ZiG coins shall be— (a) on the observe side of all the ZiG coins, an impression of the Zimbabwe Bird looking to the left, and around shall be the inscription “ZIMBABWE” with the year of manufacture; (b) on the reverse side— (i) in the case of the one ZiG coin, an impression of the Flame Lily and the inscription “1ZiG” to the bottom right of the impression of the Flame Lily; (ii) in the case of the two ZiG coin, an impression of the Great Zimbabwe Monument and the inscription “2ZiG” to the top right of the impression of the Great Zimbabwe Monument; (iii) in the case of the five ZiG coin an impression of the Victoria Falls and the inscription “5ZiG” to the top right of the impression of the Victoria Falls; (c) a diameter of— (i) in the case of the one ZiG coin, 20 millimetres with a plain edge; (ii) in the case of the two ZiG coin, 20,09 millimetres with a fully serrated edge; (iii) in the case of the five ZiG coin, 24,09 millimetres with an interrupted milling edge.
</blockquote>
The notice further states that the one ZiG shall consist of 92,94 per cent steel and 7,06 per cent nickel (Nickel plate on a steel core) and weigh 3,75g while the two ZiG will be made up of nickel plate (25 microns on steel core, that is, 94 per cent steel and 6 per cent nickel) with a standard mass of 5,3g.
The five ZiG shall consist of a nickel plate (25 microns on steel core, that is, 94 per cent steel and 6 per cent nickel) with a standard mass of 7,5g.
Meanwhile, the ZiG banknotes, which are also expected to be released next Tuesday, are denominated in 10ZiG, 20ZiG, 50ZiG, 100 ZiG and 200 ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Treasury Has Gazetted ZiG Coins Features

Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, has defended the police’s “heavy-handedness” in dealing with illegal money changers accused of undemining the new currency, Zimbabwe Gold (ZiG).
Scores of illegal foreign currency traders have been arrested across the country and charged with contravening section 5(1)(a)(ii) of the Exchange Control Act [Chapter 22:05] as read with section 4(1)(a)(1) of the Exchange Control Regulations SI 109 of 1996 “Dealing in foreign currency”.
Responding to questions during a Zimbabwe National Chamber of Commerce breakfast meeting in Mutare on Thursday 25 April, Mushayavanhu said that the law enforcement agents are there to promote the rule of law and order. He said:
<blockquote>
But having said that, people are also asking why are the police being heavy-handed in dealing with forex currency traders. From where we sit as a Central Bank, anyone who is trading in forex should have a licence.
The police have to intervene and arrest those committing offences. The police are there to arrest them because it is illegal for them to sell or buy forex without a licence.
You will be arrested if you do that. If you try to sell your tomatoes just outside this hotel, the municipal police will arrest you because that is not acceptable. The same is happening to illegal foreign currency dealers.
</blockquote>
The central bank chief also declared that the parallel market will eventually die a natural death when the usage of ZiG increases.
Mushayavanhu, however, conceded that currently 80 per cent of transactions in the country are being done in USD but expects the dominance of foreign currency to diminish in the coming months in line with the de-dollarisation roadmap.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mushayavanhu Defends Police Approach To Illegal Money Changers

Air Zimbabwe has become the latest airline to accept ZiG payments for ticket purchases, days after low-cost airline Fastjet Zimbabwe, began accepting payments in the gold-backed currency.
The national airliner announced the development via its social media pages, saying the move “reflects our commitment to adapt to the evolving financial landscape”. Reads the statement:
<blockquote>
We are pleased to advise that Air Zimbabwe accepts ZiG payments for ticket purchases through our sales offices.
This move reflects our commitment to adapt to the evolving financial landscape and offer our stakeholders convenient payment options.
As we integrate Zimbabwe Gold currency into our payment systems, we are finalizing the process for its acceptance on our online payment platform.
We understand the importance of providing seamless and secure online transactions, and we are working diligently to ensure that this option is available to our valued customers.
Air Zimbabwe remains dedicated to providing excellent service to our passengers while embracing innovative solutions that benefit both our customers and the economy.
We appreciate the continued support of our stakeholders as we navigate these changes together.
</blockquote>
The Reserve Bank of Zimbabwe (RBZ) introduced the ZiG currency on April 5 with businesses, especially supermarkets, recording a huge jump in daily sales.
The currency is backed by gold, which means its value is tied to the precious metal.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Air Zimbabwe Embraces ZiG Currency

Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, has unveiled a roadmap for de-dollarization, aiming to boost the value of ZiG transactions in the economy from the current 20% to 50% by 2026.
De-dollarisation is a process of reducing reliance on the U.S. dollar (USD) as the main transacting currency to the newly introduced Zimbabwe Gold (ZiG).
Responding to questions during a Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting held in Mutare on Thursday, 25 April, Mushayavanhu said the RBZ envisages a gradual de-dollarisation process will result in the margins being reduced on a year-to-year basis. He said (<a href="https://www.manicapost.co.zw/rbz-outlines-de-dollarisation-roadmap/">via The Manica Post</a>):
<blockquote>
The market is dollarized to the extent that 80 per cent of all transactions currently happening in the country are in USD, and only 20 per cent are in local currency. Government has said 50 per cent of transactions should be done in local currency, so they are well ahead of us.
The Central Bank has come up with a roadmap towards de-dollarisation, and as we go towards 2030, we want to do it gradually so that maybe by the end of the year, we are at 70/30, in 2025 we are at 60/40, then in 2026 we are at 50/50 and after that, we will not even care to monitor it because it will happen on its own.
You will also be seeing Government reviewing the amount you pay in ZiG for tax as we go along on that roadmap.
</blockquote>
Mushayavanhu also denied reports that ZiG has depreciated on the parallel market, saying the central bank’s systems do not allow that to happen. He said:
<blockquote>
As far as the parallel market is concerned, some of these rates that you are hearing are mere quotations. We have tested this system ourselves.
As you know we have the Financial Intelligence Unit, and we unleashed them on the market to pose as forex buyers. For example, we tasked them to buy US$ 100,000 at whatever rate, and they were ready to pay.
The FIU team requested to see the US$ first before transferring the funds to the individuals’ bank accounts.
From 8 am to 8 pm, they were saying we would avail the money, and at the end of the day, nothing materialised.
If these transactions are happening for US$5 and US$10 for people who want to buy airtime, then it is normal in any economy. I don’t think we have a parallel market for meaningful business transactions.
</blockquote>
The central bank chief asserted that the parallel market will eventually die a natural death during de-dollarisation.
He reiterated that ZiG is firmly supported by gold and other precious minerals, and the RBZ does not set a fixed rate. Instead, the value has been influenced by the rising price of gold. Said Mushayavanhu:
<blockquote>
ZiG is a new currency fully backed by gold and other precious minerals. We are projecting that ZiG will be stable. The exchange rate will not move. In fact, if you look at what has been happening since April 5, ZiG has been strengthening.
The market has been influenced by the price of gold that has been going up which means that ZiG should naturally strengthen because its major anchor is gold.
That is not because the Central Bank has been interfering with the process or has said anything.
</blockquote>
Mushayavanhu said on the issue of ZiG buying fuel, the central bank is currently seized with negotiations with players in the industry so that it becomes a possibility, and the outcome of the engagements will soon be made public.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Governor, John Mushayavanhu, Outlines De-dollarisation Roadmap

The Reserve Bank of Zimbabwe (RBZ) has launched the second phase of awareness campaigns for the new structured currency, the Zimbabwe Gold (ZiG).
The central bank is working with the Ministry of Information, Publicity and Broadcasting Services and the Parliament of Zimbabwe to reach every corner of the country.
RBZ Governor John Mushayavanhu on Thursday, 25 April, said they decided to work with the Ministry of Information because it has got the reach of the whole country through the media, and Parliament because legislators represent the people. He said:
<blockquote>
And if you go through the Members of Parliament, you will be able to reach all corners of the country and also these are the people who the people elected and they can guide us and help us to spread this message. So we are embarking on this campaign starting immediately.
</blockquote>
Mushayavanhu said the second phase of awareness campaigns of the ZiG is targeted to reach all parts of the country after realising that some communities had been left out. He said:
<blockquote>
As we were doing the rounds, the message that kept coming to us was ‘we were not going far enough’; we were not reaching all the corners of the country and the people out there were asking what is ZiG? What is a structured currency? What difference is it going to make? How different is it from the RTGS?
Are we not doing the same things over and over again and expecting different results, but without changing anything?
And arising from that, we felt it necessary that we embark on an extensive and intensive campaign to try and educate the public on this new structured currency.
</blockquote>
The teams going out to the districts and villages have been charged with educating the public on the new currency, ZiG, which replaced the Zimbabwe dollar as legal tender.
ZiG will co-circulate with other foreign currencies as the multi-currency regime will remain in place until 2030.
Meanwhile, Mushayavanhu announced that the ZiG 1 to 5 denominations, initially planned as notes, will now be issued as coins. The ZiG 10, 20, 50, 100, and 200 denominations will be introduced as banknotes.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZiG: RBZ Launches Second Phase Of Awareness Campaigns

Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu on Tuesday said the central bank still negotiating with suppliers on the possibility of fuel being sold in the Zimbabwe Gold (ZiG) currency.
Mushayavanhu appeared before the Joint Portfolio Committee on Budget, Finance and Investment Promotion, and Industry and Commerce to respond to questions on the recently announced Monetary Policy Statement (MPS). He said:
<blockquote>
We are still negotiating and making considerations on how best we can allow the selling of fuel in ZiG.
We start on taxes to be paid in ZiG and include other commodities and people are going to be advised.
We need to do our work gradually and we are going to reach that situation where[by] fuel is going to be sold in ZiG.
</blockquote>
Some of the committee members asked why fuel was being sold exclusively in US dollars when most people, especially civil servants had a salary component in ZiG. Mushayavanhu responded:
<blockquote>
Currently, we are at 85% of transactions in USD while 15% are ZiG. We will not be able to get enough ZiG if we sell fuel in the new currency.
We have US$80 million worth of ZiG in circulation on the market. In June, the country will need US$150 million worth of ZiG, hence the public must keep their ZiG…
When you get ZiG, keep it tight. By June this year, the ZiG will be hard to get. It will be very expensive. Muchaitsvaga nemaziso matsvuku.
</blockquote>
He also emphasized that the central bank will not print money not backed by reserves. He said:
<blockquote>
No money printing in future by RBZ. Any future increase will be done by increased production, and inflation variations whilst the circulation amount will be less than the reserves amount.
We will introduce money as when the economy demands. These variables are monitored daily to see the money in reserves, in circulation. I get this information every day.
</blockquote>
Mushayavanhu launched ZiG on 05 April 2024, but notes and coins will start circulating on April 30, 2024.
The exchange rate is already at ZiG20 to US$1 on the parallel market as compared to ZIG13.6 to US$1 set by the RBZ.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Governor Mushayavanhu Speaks On ZiG's Failure To Buy Fuel

Low-cost airline Fastjet Zimbabwe on Monday, 22 April, announced that its customers could now pay for their flight tickets using the Zimbabwe Gold (ZiG) currency.
Fastjet Zimbabwe, with routes from and to Johannesburg in South Africa and local routes from Harare to Bulawayo and Victoria Falls, announced the development via its social media pages. It said:
<blockquote>
We now accept ZiG payments for your travel. Book now via the fastjet app.
</blockquote>
The Reserve Bank of Zimbabwe (RBZ) introduced the ZiG currency on April 5 with businesses, especially supermarkets, recording a huge jump in daily sales.
The currency is backed by gold, which means its value is tied to the precious metal.
Zimbabweans were given 21 days to exchange their old, inflation-affected Zimbabwe dollar banknotes for the new ZiG currency.
However, the US dollar, South African Rand and Botswana Pula account for over 85% of transactions and will continue to be legal tender.
The RBZ’s Financial Intelligence Unit (FIU) has launched a blitz targetting businesses accused of trading exclusively in US dollars and refusing to transact in ZiG. FIU says it has has frozen bank accounts of 11 companies since the launch of ZiG.
However, fuel dealers have been granted permission to sell their products exclusively in forex, and this selective application of rules threatens to erode confidence in ZiG.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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