Vendors eager to use new currency

INFORMAL traders in Bulawayo have urged the Government to issue more new ZiG notes and coins to financial institutions to improve transacting convenience and enhance business operations.

The new currency, which is backed by a combination of gold, precious minerals and foreign currency reserves, was introduced early last month to replace the Zimbabwe dollar, whose value was eroding rapidly over the last few months.

Lower denomination notes and coins ranging from ZiG1 to ZiG10 began circulating in the market last week, with higher denomination notes set to follow soon.

Informal traders expressed eagerness to use the new currency, but say they are hindered by its low visibility in the market.

Mr Michael Ndiweni, director of the Bulawayo Vendors and Traders Association (BVTA), told Business Chronicle that the Government should speed up the availability of ZiG in the market, as people are keen to see how the new currency will impact their lives.

“Some shops are still not accepting ZiG under the false pretext that they don’t know its actual rate, so the Government must expedite its availability in the market,” said Mr Ndiweni.

“Other shops limit purchases to one item per product using ZiG, undermining confidence in the currency.”

Gold

He urged the Government to ensure that the ZiG maintains its value by crafting measures that will prevent speculative behaviour.

“As vendors, we suggest that the Government conducts more awareness campaigns in all areas, including rural areas.

“The greatest task the Government has, is to revive confidence in the currency by ordinary people,” said Mr Ndiweni.

A trader, Mr Fortune Sibanda, said they are eager to start using the new currency.

“As a vendor, one way or the other we have to accept the new currency as it is legal tender. My suggestion to the Government is that they should release the notes quickly,” he said.

The latest report by the Monetary Policy Committee noted that the Monetary Policy Statement and adoption of ZiG has been well received by the market and is expected to ensure lasting stability, certainty and predictability in the exchange rate and inflation.-chronicle