- RBZ urged the public to withdraw ZiG coins and smaller notes for transactional convenience
- This comes amid a public outcry over the shortage of ZiG coins, which has led to round-up pricing starting everything from a dollar
- The lack of small change has significantly impacted the cost of living, with transport costs doubling and weekly transport expenses increasing
Harare - The Reserve Bank of Zimbabwe (RBZ) has urged the public to approach their banks and withdraw ZiG coins and smaller denomination notes for their own transactional convenience, according to the latest press release.
This comes after a public outcry over the shortage of ZiG coins that has rocked the Zimbabwean economy, making everything start from a dollar.
In a press statement, the RBZ expressed concern over the low level of ZiG coin withdrawals from commercial banks, despite having issued the coins in denominations of ZiG1, ZiG2, and ZiG5 in quantities sufficient to meet the demand for small transactions and provide change.
“In addition, the Bank has also issued ZiG10 and ZiG20 notes in adequate quantities consistent with the optimal currency issuance ratios,” the Bank said.
However, the shortage of smaller denominations has led to a breakdown in the cash transmission mechanism, forcing businesses and individuals to resort to round-up pricing, starting everything from a dollar.
Since the issuance of ZiG, the market has been rocked by the shortage of these small denominations, forcing transport costs to shoot up by 100%, while others are being given zapnax as change.
For an employee going to work every day, the situation has made life expensive, as the cost of transport has doubled from US$1 to US$2 per day while from US$7 dollars to US$14 dollars per week.
Despite this, the RBZ has maintained that there is a constant ratio of currency in circulation in relation to other monetary aggregates to ensure the public's convenience.
The bank also encouraged the usage of digital financial services as a key enabler for financial inclusion and a cash-lite economy.
However, how can this be used to purchase tomatoes and pay for taxes given Zimbabwe I highly informalised?
The RBZ stated that it will continue to engage commercial banks and leverage their wide branch networks to ensure an efficient and effective supply of currency in the economy.
This move is aimed at addressing the breakdown in the cash transmission mechanism and ensuring the availability of ZiG coins and notes for the convenience of the transacting public.
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