Some traders have started accepting ZiG currency after banks successfully configured their digital platforms and the shops reset their prices in the new currency.
Other traders are now at an advanced stage to migrate to
the use of the new local currency before tomorrow’s deadline.
Mainstream large retailers were transacting in both ZiG and
foreign currency by allowing those with bank cards to swipe after the banks
completed configuring their systems so the cards would work.
According to a market update by Zimswitch, which has
already completed the roll out of the ZiG processing system, about 15 banks
were live with the ZiG by yesterday.
These included NMB Bank Limited, POSB, InnBucks,
Empowerment Bank, Stanbic Bank, ZB Financial Holdings, Nedbank, CABS, First
Capital Bank, Ecobank, One Money, O’mari, My Cash, African Century, EcoCash and
Steward Bank, with the few remaining indicating that they would follow suit,
and beat tomorrow’s deadline.
Zimswitch is the country’s sole national payments platform
and clearing house. It was incorporated in 1994 to process domestic card-based,
both ATM and point of sale “swipe”, and EFT transactions among member financial
institutions in real-time online.
EcoCash Holdings, the largest local mobile money platform,
notified its customers yesterday that it had successfully converted Zimbabwean
dollars to ZiG currency although there were delays in letting people spend
their ZiG balances on EcoCash products.
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu last
week introduced the new currency which is backed by the country’s gold and
foreign currency reserves.
ZiG notes and coins will start circulating on April 30, but
the electronic banking systems should be operational starting tomorrow across
all platforms and all service providers, with the last banks and shops coming
on line by then.
Confederation of Zimbabwe Retailers president Mr Denford
Mutashu said most retailers and wholesalers had completed the migration from
the old system to the new. For the retail trade the migration was simple,
largely resetting prices in their databases, but the connection with customer
debit cards once Zimswitch was up and running required the issuing banks and
mobile money providers to be processing ZiG transactions so the money could
flow from customer accounts to retailer accounts. This has been the delay.
“Retailers and wholesalers are ready but it looks like
swipe cards are not yet working. Most have been assured by their banks that
tomorrow it could be all systems go,” said Mr Mutashu.
Harare City Council has also indicated that they had
successfully changed over from the Zimbabwe dollar to ZiG.
“The city would like to inform its valued residents that
following the currency changeover, all customer account balances have been
converted to ZiG with immediate effect. The city is already transacting in Zig
and other currencies in line with the multi-currency system. All historical
transactions on customer accounts are available in Zimbabwe dollar for
inspection, verification and accurate conversion to ZiG. Residents are
encouraged to pay their bills both on our online platforms as well as in our banking
halls,” said City of Harare town clerk, Engineer Hosiah Chisango.
Tobacco farmers are upbeat on the coming of ZiG currency
which they felt would help contain the parallel market and maximise value for
their crops.
In separate interviews at the auction floors yesterday,
tobacco farmers said they have hope in ZiG currency and called for more
educational campaigns for a better understanding of the new currency.
Mr Simon Masawa of Karoi said there is high hope that the
new currency can endure inflationary pressures given that it is backed by gold
among other assets.
“From my understanding, the ZiG currency is better although
we are still waiting to trade. Transacting using the old currency was a bit
tricky because it was susceptible to inflation. It was constantly depreciating
and compromising operations but now we are happy that we are assured of a
stable currency,” he said.
Mrs Jane Mende of
Bindura said if the ZiG currency performs better than the previous currency,
tobacco production output will rise significantly.
“We have hope that this new currency has more value than
the old one. We appeal to banks to speed up the configuring processes so that
we embark fully on trading,” she said.
Mr Themba Mutikani of Mt Darwin said 25 percent of local
currency that is paid to tobacco farmers will be meaningful if there is strict
compliance with value preservation measures announced by the Reserve Bank in
its monetary policy statement.
“There is hope if the currency remains stable. As farmers
we are happy that the Government has introduced a local currency that has more
value,” he said. Premier Tobacco Auction Floor executive director Mr Owen
Murumbi said the new currency will benefit farmers as they will get the full
value of their money. Herald
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