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RBZ defends ZiG as markets dollarization escalates   

Business Reporters

THE Reserve Bank of Zimbabwe (RBZ) has moved to defend the newly incepted currency in the wake of chaos emanating from uncertainty which has prompted markets mayhem.

The central bank governor, Doctor John Mushayavanhu this week urged traders to accept the phased out ZW$ notes until month end following the escalation of US$ demand as the markets rejected the old notes.

“The RBZ has taken note of the concerns of the public emanating from the rejection of the ZW$ notes to be demonetised, which has resulted in the unavailability of ‘change’, thus forcing businesses, mainly commuter omnibuses to round-off prices to US$1,” said Mushayavanhu on Wednesday.

“The Reserve Bank would like to reiterate that the ZW$ notes currently in circulation are still valid and remain legal tender until 30 April 2024. Accordingly, the ZW$ notes should continue to be used for transactional purposes at the announced ZiG/ZW$ conversion factor of 2498.7242.

“Business entities where the notes have been widely used, including commuter omnibuses, shops, fresh vegetable markets, and vendors, are advised to continue accepting payment in ZW$ notes until 30 April 2024.”

Economist Steve Hanke has mocked Zimbabwe’s introduction of its new currency, the ZiG, declaring that the country is on a merry-go-round regards its monetary policies.

“Zimbabwe has introduced a new currency – the ZiG – the sixth in TEN YEARS,” said Hanke.

“The ZiG is supposed to be backed by gold. BUT WHERE’S THE GOLD? Where there’s a ZiG, there’s a ZAG.”

Hanke’s comments implied Zimbabwe was just in a Zig Zag.

Most informal traders are now demanding the US$ exposing the general populace to hardships considering that the sector dominates business transactions.

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