Business Reporter
THE usage of the Zimbabwe Gold (ZiG) currency in settling local transactions has reached 40% on the back of widespread acceptance of the local unit, FinMin permanent secretary, George Guvamatanga has revealed.
Guvamatanga made the revelations during the 2024 Mid Term Budget Review breakfast meeting held Wednesday.
“ZiG now accounts for 39% of domestic transactions from the 30% recorded in April 2024.The balance of 61% of transactions continues to be conducted in foreign currency , mainly in US$.This demonstrates the growing acceptance and wider use of the domestic currency,” he said.
He said efforts are currently under way to increase the distribution of physical notes ,particularly to outlying rual areas in a move aimed at bolstering increased circulation across the country,
“To say that the ZiG is not circulating is not correct,the Zig has been accepted in the market but it is only circulating in electronic form.When we introduced the ZiG , the portion of transactions was 80-20% and now we are at 61-39% so there has been very marked increase in the use and acceptance of ZiG, we are seeing more transactions in ZiG.
“From a government revenue perspective, it is gthe same.There is also movement from the previous 80-20,” he said.
Guvamatanga added the ZiG is stable and what is needed is to inject the smaller denominations of the local currency into the economy.
