ZiG continues to show its viability as the exchange tender
of choice with more industry players now accepting the new local currency in
exchange for goods and services.
In a business update, fastjet airline said customers could
now book and pay for flights using the local currency.
“Fastjet Zimbabwe is pleased to advise that we have
successfully migrated to the ZiG currency.
“Customers may now book and pay in ZiG. Payments in ZiG can
only be made at any fastjet airport ticketing desk or fastjet sales shops,”
said the air line.
In an interview yesterday, Confederation of Zimbabwe
Industries (CZI) president, Mr Kurai Matsheza, said the demonstration of
confidence in ZiG across all sectors was evidence that the country was on the
right path.
“We welcome that demonstration of confidence, we hope it
will spread to all sectors of the economy.
“As we observed, some companies are accepting the ZiG,
which demonstrates that confidence is building up, so our hope is that over the
coming months and year there will be more and more confidence in ZiG,” he said.
Mr Matsheza said the increase in confidence would
undoubtedly see the reliance on the US dollar diminishing as the use of the
local currency gains traction.
“If you remember the speech by the Reserve Bank Governor,
he said he would be happy if by the end of the year the use of the US dollar
will have come down from levels where it is now to may be 70 percent or below,
so we hope that target will be achieved.
“Well, the market will tell and as we observe, these small
steps we are seeing now are showing that there is confidence. By and large, any
economy needs to have its own currency so a country must have its own currency
and I do not think there is any debate about that,” he said.
Confederation of Zimbabwe Retailers (CZR) president Dr
Denford Mutashu said current indications pointed at increased ZiG use once
notes and coins were introduced on Tuesday next week.
“The market has embraced ZiG and the joy will be doubled
once the notes and coins start circulating as people can’t wait.
“The ZiG will be a sustainable currency because it’s gold
backed, a precious mineral whose value can only firm up than depreciate,” he
said.
Mr Mutashu said 50 percent of all provisional tax payments
for companies would be done in the local currency, hence increasing demand for
it.
“We are working closely with Government and are quite
satisfied we share the same interests of a stable currency, exchange rate and
inflation.
“Fifty percent of QPDs will be paid in ZiG and all big
companies will be chasing after the ZiG. Creating demand and space for ZiG is
one of the ways of attaining stability,” he said.
Service providers and supermarket chains across the country
have enjoyed brisk business owing to the continued growth of confidence in the
ZiG.
Dr Mushayavanhu yesterday told a joint sitting of the
Portfolio Committees of Budget, Finance, Economic Development and Investment
Promotion and Industry and Commerce that the Central Bank had enough reserves
to back the new currency.
He said the RBZ had US$100 million in cash and nostro
balances and US$185 million worth of gold. “That is enough to anchor the
currency and, going forward, Government is also going to be purchasing the 25
percent surrender requirement from exporters and of that 25 percent, half of
that, 50 percent, is going to be sold back to the market through the banks to
ensure that there is foreign exchange liquidity in the market so that any
importer, or any person, who wants to purchase something from outside the country
can access the foreign exchange from their bank.
“So, I can assure you Honourable Members that we have
enough reserves to support ZiG,” Dr Mushayavanhu said.
He said the value of the local currency would be determined
by market forces through the willing buyer willing seller concept.
“The exchange rate is going to be determined by market
forces. However, the Central Bank will only intervene in the market if the
exchange rate is depreciating too fast or appreciating too fast, just like any
other Central Bank in the world does,” he said.
Dr Mushayavanhu added that they had created a monetary
policy implementation committee to track variables like money supply, inflation
and productivity to ensure that the Central Bank sticks to the issues it
announced in the monetary policy.
He said the value of the ZiG was likely to rise due to an
expected increase in demand when companies pay their quarterly tax payments in
June, with half of those payments to be done in ZiG.
Dr Mushayavanhu also told the committees that they had
consulted widely in coming up with ZiG.
“I was told by His Excellency, the President that I was
going to be the Governor of the RBZ on September 11, 2023. I started preparing
to do the job and holding consultations.
“I and my incoming team consulted widely. As I have said
before, we consulted CZI, the Chamber of Mines, other business organisations,
civil society, we consulted opinion leaders, we even sought assistance from
consultants from multi-lateral organisations who were generously seconded to
us.
“I heard that yesterday (Monday) people were saying we got
the structured currency that we introduced from the World Bank, that is not
true.
“We got a consultant seconded to us by the World Bank and
that assisted us in getting further information on the structured currency and
refining our thoughts on that currency.” Herald
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