- ZiG online payments to start smooth operating on Friday
- This comes after the shift from ZWL to ZiG currency
Harare- In a circular released by the Reserve Bank, John Mushayavanhu, the Governor of the Central Bank, has announced that all online payment platforms will operate smoothly for all transactions starting from Friday, April 12, 2024.
This development follows Zimbabwe's recent introduction of a new currency called ZiG (Zimbabwe Gold). ZiG is backed by US Dollar Reserves, consisting of up to US$100 million in cash and 2.5 tonnes of gold worth US$185 million. The combined reserves of US$285 million are sufficient to fully cover the reserve money in the system, which amounts to 2.6 trillion or US$90 million equivalent.
While these reserves are currently adequate, it is recognized that additional reserves are necessary to meet the global best practices of maintaining reserves equivalent to at least three months of import cover.
"The Reserve Bank of Zimbabwe (the Reserve Bank) would like to inform that the banking sector and Payment Systems Providers (PSP) have made satisfactory progress in converting ZW$ balances into Zimbabwe Gold (ZiG) balances since the announcement of the Monetary Policy measures on April 5, 2024. The conversion process will continue for other economic sectors until Friday, April 12, 2024," stated Governor John Mushayavanhu.
As outlined in the Monetary Policy Statement and Statutory Instrument 60 of 2024, the general public has a transitional period of up to 21 days to convert their ZW$ notes and coins to ZiG. Therefore, ZW$ notes and coins will remain valid for transactions, using the ZiG: ZW$ conversion factor of 2498.7242, until April 8, 2024, within the 21-day transitional period.
The production of ZiG notes and coins has been initiated and they will begin circulating in the economy on April 30, 2024. This will allow the Reserve Bank to conduct an extensive educational and awareness campaign on the key security features of ZiG notes and coins. The campaign aims to reach a wide range of society, aligning with the Reserve Bank's focus on financial inclusion.
"The Reserve Bank emphasizes that the issuance of new currency always involves this important process.
“We are taking all necessary measures to ensure that the public is not disadvantaged and that value preservation and transactional convenience are maintained during this transitional period.
“The Reserve Bank urges the public to be patient as the banking sector, business community, and the rest of the economy adapt to the new normal," stated Governor Mushayavanhu.
Equity Axis News
