Informal traders praise RBZ’s efforts to increase availability of local currency

INFORMAL traders in Bulawayo yesterday praised the Reserve Bank of Zimbabwe (RBZ) for enhancing access to the local currency by providing smaller units through Homelink branches.

The RBZ has collaborated with Homelink to expand the availability of ZiG cash, utilising its branch network.
According to the Central Bank, enough quantities of ZiG coins have been issued to banks to meet demand for small denominations used to conduct low-value transactions, as well as usage of small denominations for change.

To ensure public convenience, the Apex Bank has maintained a consistent currency circulation ratio in comparison to other monetary aggregates like narrow and broad money.

Recently, RBZ Governor, Dr John Mushayavanhu, announced that starting yesterday, individuals, commuters, public transport operators, retailers, informal traders, vendor associations and other stakeholders can visit any Homelink branch to transact and swipe for ZiG cash using their local currency debit/credit cards.

The central bank aims to increase the availability of small denominations, including ZiG1, ZiG2, ZiG5 and ZiG10, across the economy.

In a snap survey conducted by the Chronicle Business, several traders were seen at Bulawayo Homelink branch seeking to withdraw coins.

The director of the Bulawayo Vendors and Traders Association (BVTA), Mr Michael Ndiweni, expressed gratitude for the RBZ’s efforts, which he said would enable vendors to begin trading using the local currency and provide change in the same currency to customers.

“I believe the central bank should expand beyond Homelink to serve a wider range of people. The branches are only in Bulawayo, but we have other traders in small towns such as Gwanda, Matopo and Umzingwane.

“There is also a need to supply coins to every bank so that traders can receive the local currency frequently,” he said.
Dr Mushayavanhu said the Central Bank is committed to ensuring sufficient local currency, ZiG circulation in the economy is necessary to support normal business transactions and economic activity.

The Government introduced ZiG in April as a replacement for the Zimbabwe dollar, which had depreciated significantly due to currency fluctuations and high inflation levels.

Since its launch, ZiG has maintained a steady value in comparison to the US dollar.
This stability has led to price consistency and has enhanced purchasing power for consumers. The currency has garnered broad support from various economic players.

However, some pockets of resistance still remain, with consumers raising concern over unscrupulous businesses that either inflate foreign currency prices for goods and services or use black market exchange rates of up to US$1:18 ZiG yet the official exchange rate is hovering at below ZiG13,5 against the USD.

Additionally, some traders feign network issues with their card machines to push for forex transactions instead of local currency sales.

Numerous fast-food vendors and informal sector businesses are openly rejecting ZiG. —chronicle