ZB urges SMEs to embrace ZiG

ZB Financial Holdings (ZBFH) has encouraged small to medium enterprises (SMEs) in Bulawayo to embrace and appreciate the new currency, Zimbabwe Gold (ZiG), to boost their sales.

Speaking during the SMEs Expo in Bulawayo on Saturday, ZBFH head group economics and corporate strategy department Trymore Muhlanga said the informal sector should be confident in the new unit backed by gold and foreign currency.

“I think we would have seen that, especially on the formal market, even on the alternative market, ZiG has held its own quite significantly,” he said.

“As an analyst and economist, my view is that if we can continue on the trajectory we are on, there is hope for us as a nation and hope that we will have a stable currency because it is backed by gold.

“If the authorities stick to backing the currency with gold without putting money in excess of the reserves we have, then the ZiG will work as it has shown thus far. But if we depart from fundamentals, then the stability of the ZiG unfortunately will be very short term and beyond that we will have issues.”

Muhlanga said as long as there is the United States dollar among currencies, the exports would remain uncompetitive.

“So I am just saying here, we need our own currency that we can depend on; it’s just faith and confidence. One of the most important things is the fact that the government should lead in demanding its own currency,” he said.

“Because as long as I want to go to the passport office, I need to convert my ZiG to US dollars, then it means the parallel market will stay. But if we do it right, ZiG is the currency.”

The new currency, launched in April this year, has done little to address change challenges in the market among other issues.

Physical notes and coins remain in short supply.-newsday