Zimbabwe’s currency shift bites, leaving many struggling

Zimbabwe’s recent switch to the ZiG currency, touted as a solution to hyperinflation, is causing unintended hardship for ordinary citizens as a lack of change has led to rampant overcharging for basic necessities like transportation and small goodies.

The ZiG, short for Zimbabwe Gold, replaced the Zimbabwe dollar, a complex system combining electronic RTGS dollars, bond notes, and physical coins.

While inflation had rendered most denominations of bond notes and coins worthless, the $100 bond note remained widely accepted, especially for change purposes.

However, with the introduction of the ZiG, which comes into circulation on April 30, many Zimbabweans are experiencing a frustrating situation.

Businesses and public transporters, faced with no change options, are rounding up prices or refusing transactions altogether. This is forcing people to pay significantly more for everyday goods and services.

“A dollar for a short ride,” remarked a Harare woman, who preferred to be identified only as Miriam, “for such distances I normally pay 50c. This new money’s supposed to make things easier, not force me to overpay for my commute.”

The impact is particularly harsh considering the pre-switch exchange rate. Before the ZiG, US$1 could be exchanged for roughly $6,000 in Zimbabwe dollars. The readily available $100 bond note made buying small items, even for as little as 10 cents, a manageable task.

Veromica Moyo, a vendor selling vegetables at a informal market in Budiriro, a high density suburb in Harare, said before the unveiling of the new currency, customers typically paid bond notes for little purchases.

“Now, with this ZiG currency, the problem is change,” said Moyo.

“I either have to turn customers away, or I have to round things up to a dollar. It feels terrible, though. They might only need a few cents worth of tomatoes, but they end up paying a full dollar because I can’t give them change.”

This not only discourages customers but also eats away at her meager profits.

“Before, people would come with their bond notes and buy a few tomatoes here, a handful of onions there. Now, with this new money, I don’t have change for them, so they are forced to buy more than what they ordinarily require. It hurts my business both ways. Less sales, and less profit,” Moyo added.-ebusinessweekly