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RBZ dumps ZWL, introduces new Zig currency

Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) governor, Dr John Mushayavanhu has dumped the ZWL currency and moved to Zimbabwe Gold (Zig) currency.

The new Structured Currency comes into circulation with immediate effect as all banks have been directed to convert their systems to the Zimbabwe Gold (Zig) currency.

The starting exchange rate to be gazetted next Monday of the Zig currency will be at a rate of US$1: 13,56and price shifts will be determined by the movements in gold prices.

The recently sworn in governor said he swap rate shall be used to make legitimate conversions of all ZW$ deposits in the banking sector; all ZW$ loans and advances made by the sector; ZW$ treasury bills; all outstanding auction allotments; all export surrender obligations; all prices of goods and services in ZW$; and any other ZW$ denominated obligations.

“The starting exchange rate to be gazetted next Monday of the Zig currency will be at a rate of US$1: 13,56and price shifts will be determined by the movements in gold prices,” Mushayavanhu said.

All ZW$ notes and coins held by account holders will be credited into their ZiG accounts using the applicable conversion factor.

The banks will continue to accept these deposits for a period of 21 days after 5 April 2024.

The Reserve Bank has made special arrangements for those without bank accounts to swap their ZW$ notes and coins at POSB and AFC Commercial Bank within 21 days after 5 April 2024.

“ Accordingly, ZiG notes and coins shall be issued in denominations made up of 1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG, and 200ZiG which will be distributed through the usual normal banking channels and, will be fully covered by the quantity and value of gold and foreign currency held as reserves.

“ The currency denominations are also informed by the intervening exchange rate of the ZiG to the US$,” he said.

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