MOST illegal money changers popularly known as “Osiphatheleni” have abandoned their traditional trading spots in Bulawayo following the launch by the Government of the new gold-backed currency, the Zimbabwe Gold (ZiG)
The new currency will be backed by the quantity and value
of precious minerals — mainly gold — as well as foreign currency reserves held
by the Reserve Bank of Zimbabwe (RBZ).
Newly appointed RBZ Governor, Dr John Mushayavanhu, last
Friday unveiled the country’s new medium of exchange, the ZiG, as part of
comprehensive policy measures to address exchange rate volatility, curtail
inflation, and restore durable macro-economic stability.
Presenting his inaugural Monetary Policy Statement (MPS) in
Harare, the new Central Bank chief said the Apex Bank was recalibrating its
monetary policy framework to address the current state of price and exchange
rate instability in the economy.
The exchange rate and inflation volatilities experienced in
the economy continued to threaten the prospects of the local currency under the
multi-currency system, hence the coterie of proposed new measures in the MPS,
including the new structured currency.
Illegal money changers who spoke to the Chronicle yesterday
said there was uncertainty in their business following the introduction of the
ZiG. A majority of them have not been trading since Friday last week.
A Chronicle news crew yesterday took to the streets and
observed that there was no activity in popular spots synonymous with illegal
money-changing businesses.
Money changers said they were only conducting business
transactions in US dollars and South African rand.
The handful of Osiphatheleni could be seen milling around
their usual spots near Bootleggers Bottle store and Tredgold Building.
They said the announcement of the monetary policy statement
took them by surprise, rendering their business irrelevant.
“Since the announcement of the new currency, most of us
have had to wait for financial institutions and service providers to
reconfigure their systems to encompass the ZiG. Since Friday, we were literally
doing nothing,” said a money changer who declined to be named.
Another money changer, who also preferred to remain
anonymous said he was optimistic that once systems are reconfigured it will be
business as usual.
“Nothing has changed and the game is still the same. For
now, we just wait for the systems to be reconfigured to suit the ZiG and then
we will be back on the streets,” he said.
Another money changer who only identified himself as Thabo
operating near Bootleggers Bottle Store said some companies have already
standardised the multi-currency rates.
Most people who had RTGs in their accounts were left
stranded after shops and other service providers across the country stopped
trading in local currency, as financial institutions were migrating to the ZiG.
The unveiling of the new currency is part of a
comprehensive economic reform initiative aimed at addressing ongoing challenges
and stabilising the economy.
Financial institutions as well as service providers have
since been ordered to upgrade and convert their systems to accommodate the new
currency.
This is seen as a significant milestone in Zimbabwe’s
economic journey, highlighting the Government’s commitment to promoting
economic growth and stability.
Several service providers such as banks and mobile money
transfer agencies alerted their clients of the new development and are still
seized with reconfiguring their systems. Leading mobile telecoms service
provider EcoCash yesterday said it had completed the conversion process.
“We are pleased to advise that EcoCash services have been
restored. You can now transact on USD & ZiG,” reads a message sent to
millions of subscribers by the company. Following the notification, some mobile
money users were able to check their converted balance.
Wrote FBC Bank to its client: “We are progressing well in
converting ZWL to ZiG on our banking system. Functionality tests are underway.
Meanwhile, all USD platforms are now up”.
RBZ Governor Dr Mushayavanhu had given mobile network
operators up to yesterday to ensure that all of their customers effortlessly
transition from ZW$ wallets to ZiG wallets.
He further directed that once the local currency is
re-denominated ZiG, all domestic traders are expected to consistently modify
their pricing strategy to account for the currency reforms from the RBZ.
Dr Mushayavanhu gave all entities, other than banks and
mobile network operators (MNOs), a seven-day ultimatum from last Friday to
complete the configuration of their systems to conduct business in ZiG.
Most shops and other formal business entities in Bulawayo
were still transacting in United States dollars and South African rand for
goods and services as they were still synchronising their systems with the new
gold-backed local currency.
Chronicle established that big retailers such as OK
Zimbabwe, Pick n Pay, and Edgars Stores Limited were inundated with clients
seeking to make payments through local currency swipes, only to be told that
only clients with United States Dollars were being served.
In Beitbridge, the currency change has not affected the
movement of people through the border post as travellers largely depend on the
South African rand for their cross-border related businesses.
Regional immigration officer in charge of the southern
region, Mr Joshua Chibundu, said they were yet to note any changes in the
movement of traffic through the Beitbridge Border Post since Friday.
“It is business as usual; we haven’t seen a change in the
movement trend,” he said.
Most money changers in the border town were largely dealing
in US dollars and rand transactions.
“For now, we are converting either the rand into US dollars
or vice versa only until there is closure on the newly introduced currency
issue. However, we haven’t felt the change considering that we are in a rand
economy in this town where the rand is the largest currency of trade,” said a
money changer who declined to be named. The situation was the same in most
shops with consumers buying goods and commodities in rand.
In a statement on Saturday, RBZ said the banking sector and
payment systems providers had made satisfactory progress in converting the ZW$
balances into ZiG balances since the pronouncement of the Monetary Policy
measures on Friday.
“The conversion process will continue for other economic
sectors until Friday, 12 April 2024. Thereafter, the Reserve Bank expects that
all the online payment platforms will be operating smoothly for all
transactions in the economy. Chronicle
0 comments:
Post a Comment