Zimbabwe urges international companies to accept its new gold-linked currency

The governor of the Reserve Bank of ZimbabweJohn Mushayavanhu, this Thursday urged local, regional and international companies to accept the gold of Zimbabwe (ZiG), the country’s new currency, linked to gold and approved last Friday in an attempt to stabilize the economy of the African country.

Mushayavanhu He assured, in statements to EFE, that there is reluctance to admit the new currency, since the previous currency, the Zimbabwean dollar, remains legal tender until April 30.

The acceptance of ZiG in the market it will be difficult, because the business sector does not have confidence in it and prefers to continue using the multicurrency system, the businessman and economist told EFE. Nigel Chanakira.

This system was introduced by Zimbabwe in 2009 and involves the use of currencies such as the South African rand, the Botswana pula, the British pound and the Chinese yuan, following hyperinflation that hit the country’s economy and left the local currency worthless.

“The country’s currency has lost value and no one will accept it in the market and I don’t see the public accepting it either, since the ZiG is not negotiable outside the country”Chanakira argued.

Despite the problems of acceptance of the ZiG, Mushayavanhu It counted more than 90% of the banking entities and mobile phone companies that already operate with this currency, used for transactions but whose bills are not yet in circulation.

“The bank will work to strengthen the currency to achieve full convertibility”, stressed the governor.

He also noted that, as the implementation of the ZiG increases, the Reserve Bank and the Government of Zimbabwe will encourage the fuel sector to accept the new currency in its activity.

With the introduction of ZiG, Zimbabwe hopes to achieve greater economic stability that will help curb high inflation.

Last October, Zimbabwean President Emmerson Mnangagwa extended the use of the US dollar for transactions in the national economy until 2030, a move aimed at allaying market concerns about a possible policy change in the African country’s multi-currency regime.

The US currency remains the dominant currency in this southern African country, as the value of the Zimbabwean dollar, which was reintroduced in 2019, has been devalued due to high inflation.