‘Currency of choice’- Chamber of Mines throws weight behind ZiG

THE Chamber of Mines of Zimbabwe has thrown its full weight behind the Zimbabwe Gold currency describing it as a “currency of choice” for both business and the general public commending the Government for the efforts to build confidence in the ZiG.

The ZiG replaced the Zimbabwe dollar as the local currency in early April and has made positive gains against the US dollar in the last two months.

Supported by gold and foreign reserves, ZiG aims to reduce inflation and bring back long-term economic stability. The multi-currency system will continue until at least 2030.

Businesses are transitioning well to using ZiG, leading to stable prices and limited exchange rate fluctuations.

Speaking at a recent Annual Mining Conference, Chamber of Mines president, Mr Thomas Gono said: “We commend Government on the introduction of the Zimbabwe Gold currency and the efforts to support the new currency to ensure its wide usage in the economy. We believe that the ZiG will be the currency of choice soon.”

Mr Gono said many operations in the sector are facing foreign currency shortfalls to meet their operational requirements.

He noted that the economy has witnessed increased usage of US dollars putting pressure on the available retained export earnings.

“We commend the Government for the efforts to build confidence in the ZiG. We support Government efforts to secure the functional use of the portion of export revenue that is converted to ZiG.

“In addition, support measures for the ZiG are greatly welcome. By ensuring that the ZiG is a preferred transactional currency in the economy for both business and the general public, the pressure on the retained portion is bound to dissipate.”

The Chamber of Mines sentiments come at time when the International Monetary Fund (IMF) pending routine Article IV mission has placed the assessment of ZiG on its agenda.

Said IMF spokesperson Julie Kozack, On Zimbabwe, our staff is expected to conduct Article IV Consultation Mission later this month (June).

“Part of the Article IV Mission will of course assess the entire economy as we always do but will also be looking at the new currency arrangement, the ZiG and the mission will give us an opportunity to do that.

She said IMF stands ready to discuss with the authorities and support efforts to restore micro-economic stability.

The IMF mission is expected in the country between June 18 to June 27 for Article IV consultations.

Data released by the Zimbabwe National Statistics Agency showed that monthly inflation measured for the first time in ZiG currency terms fell to 2,4 percent in May.

In an effort to increase the circulation and availability of ZiG, starting today, the Reserve Bank of Zimbabwe is allowing the public, including vendors and transport providers, to visit their nearest Homelink branches to obtain coins.

The initiative aims to make sure that there is an adequate supply of small denominations.

Last week, RBZ Governor Dr John Mushayavanhu said the central bank was committed to facilitating a steady circulation of local currency in the economy to support regular business transactions and economic operations.

“Pursuant to the above and for the convenience of the transacting public, the bank wishes to advise the public of an arrangement with Homelink to widen access to ZiG cash, leveraging on its existing branch network. The bank particularly seeks to expand the economy-wide availability of small change in the following denominations: ZiG1, ZiG2, ZiG5 and ZIG10,” he said.

He appealed to individuals, commuters, public transport operators, retailers, informal traders and their associations, vendor associations and other key stakeholders, which interface with the transacting public to approach their nearest Homelink branch and swipe for ZiG cash using their local currency debit/credit cards, with effect from today.

The exchange of foreign currency cash for ZiG cash can also be made at Homelink branches at the ruling interbank exchange rate.

Dr Mushayavanhu said going forward, the initiative will be expanded to other bureau de changes.

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