Numerous illicit money changers have allegedly vacated their customary trading locations in Bulawayo since the Reserve Bank of Zimbabwe (RBZ) introduced the new gold-backed currency, Zimbabwe Gold (ZiG).
The central bank has asserted that ZiG’s value will be secured by both the quantity and worth of precious metals, along with the foreign currency reserves it maintains.
Unlicensed currency traders interviewed by the Chronicle on Monday expressed apprehension due to the ZiG’s recent introduction.
Most of them confirmed that they ceased trading last Friday, while the minority who continued are exclusively dealing in US dollars and South African rand.
A small group of money changers lingered near their customary spots, close to Bootleggers Bottle store and Tredgold Building—locations that were bustling hubs before the ZiG’s debut.
A money changer who preferred anonymity told the Chronicle that Friday’s Monetary Policy Statement (MPS) caught them off guard, leaving their business seemingly inconsequential. He said:
Since the announcement of the new currency, most of us have had to wait for financial institutions and service providers to reconfigure their systems to encompass the ZiG. Since Friday, we have been doing nothing.
Another money changer, who also preferred to remain anonymous said he was waiting for financial institutions to reconfigure their systems. He said:
Nothing has changed and the game is still the same. For now, we just wait for the systems to be reconfigured to suit the ZiG and then we will be back on the streets.
An illegal money changer in Beitbridge, primarily handling US dollars and rand, was minimally impacted by the ZiG launch. He said:
For now, we are converting either the rand into US dollars or vice versa only until there is closure on the newly introduced currency issue.
However, we haven’t felt the change considering that we are in a rand economy in this town where the rand is the largest currency of trade.
Many individuals who held RTGs in their accounts found themselves stranded when shops and service providers across the country ceased accepting the local currency. This situation arose because financial institutions were transitioning to the Zimbabwe Gold (ZiG).
RBZ Governor John Mushayavanhu set a deadline for mobile network operators (MNOs) to ensure a smooth transition for their customers. By Monday, April 8, all MNO customers were expected to effortlessly switch from ZW$ wallets to ZiG wallets.
Once the local currency is re-denominated as ZiG, domestic traders are required to consistently adjust their pricing strategy to align with the currency reforms introduced by the RBZ.
Entities other than banks and MNOs were given a seven-day ultimatum starting from the previous Friday.
Their task was to configure their systems to conduct business using the new ZiG currency.
