Residents Skeptical on the Use of ZiG As RBZ Distributes to Banks For Use by Public
Innocent Sibonginkosi Ncube
Tomorrow Zimbabweans wake up to use the new Zimbabwe Gold (ZiG) currency, in its physical form.
The new currency has been used electronically since it was launched three weeks ago. The Reserve Bank of Zimbabwe (RBZ) had issued banks with the conversion matrix which converted the withdrawn ZWL$ balances at the beginning of this month.
The ZWL$ had lost tremendous value against major currencies and had become a thorn in the flesh for the entire nation.
The ZiG notes and coins will be distributed to banks today with the public set to access the money from Automated Teller Machines and inside the banks.
Before the public could use the hard money, withdrawal limits have already been set by the Apex bank. Weekly cash withdrawal limits will be pegged at ZiG3 000 for individuals and ZiG30 000 for corporates to manage the initial rollout.
The new ZiG banknotes and coins will be distributed today the Apex bank, RBZ, to commercial banks. The public is expected to start using the new hard currency later in the day or the following morning.
At its launch, the RBZ pronounced that the new structured currency is backed by US$ cash reserves with a combination of gold and other precious minerals, will be circulation on Tuesday.
The RBZ Governor Dr. John Mushayavanhu said everything was in place for the seamless distribution of the new currency.
“All banks will start collecting cash from the Reserve Bank of Zimbabwe tomorrow(today),” said Dr Mushayavanhu.
“We have since communicated with them, including giving them a communiqué on the cash withdrawal limits.
“Banks have already been advised on the maximum limits for withdrawal by individuals, corporates, schools and Government.”
RBZ’s Financial Intelligence Unit (FIU) indicated the cash withdrawal limits.
“In view of the introduction of the new structured currency, ZiG, through the Reserve Bank Governor’s Monetary Policy Statement on April 5, 2024, the following ZiG cash withdrawal limits shall apply,” reads the directive.
“Individuals: ZiG3 000; corporates: ZiG30 000; schools, hospitals, clinics, and local authorities: ZiG250 000 (monthly); Government ministries and departments ZiG300 000 (monthly).”
It states that withdrawal limits for United States dollar accounts remain unchanged.
“Banks are required to undertake due diligence when processing cash requests for customers to ensure the facility is not used for criminal activities,” it continues.
“Where a customer has a valid need to withdraw cash above the stipulated limit, the bank shall continue to submit such an application to the FIU, clearly setting out the special grounds for the request.
“The FIU will not grant any such requests unless satisfied that no other forms of payment are reasonably available to the customer.”
Members of the public who spoke to this publication on the roll out of the new currency had this to say,
“As long as we don’t see heaps and heaps of the ZiG before the roll out, there is no problem.” Said Hamadziripi a Sole trader.
“I had hoped that things will be cheaper in shops at the introduction of the ZiG, but its still the same. Mina I will change the ZiG into US dollars the moment I get paid, I no longer trust this government.” A Civil servant who prefered to call herself MaMpofu said.
“My only worry is why won’t we buy fuel from the pump using the ZiG. As long as we don’t buy fuel and pay for passports using ZiG we are going nowhere.” Said a hairdresser by the name Jay Jay.
“See already Osiphatheleni started changing the electronic ZiG two weeks ago do you think they are not going to change the hard currency? Off course they will.” Continued Jay Jay.
Another hair dresser who said she could not give her name asked,
“Who gives these Siphatheleni the money to change. I think those are the ones who must be arrested because they are the ones fueling the black market”.
A stement from the RBZ states that,
“We are now in the final stages of operational readiness for the exercise.”
The ZiG notes and coins will be slowly introduced into the market in denominations ranging from ZiG1 to ZiG200.
The ZiG currency replaced the Zimbabwe dollar, which had been rapidly depreciating against major currencies since the beginning of the year. The RBZ said it has in its reserves US$100 million in foreign currency, and 2,5 tonnes of gold valued at US$185 million to back up the ZiG against inflation and speculation tendencies.
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