Private, public sectors urged to accept ZiG in all...

Private, public sectors urged to accept ZiG in all financial transactions

**Finance and Economic Development and Investment Promotion Minister, Prof Mthuli Ncube**

Zim Now Writer

The Ministry of Finance and Economic Development and Investment Promotion has implored all Ministries, Departments and Agency and the private sector to accept and recognise the Zimbabwe Gold currency as the official currency for all financial transactions and payments for all goods and services.

In a statement, Minister of Finance Mthuli Ncube has emphasised the urgency and importance of a swift transition and market adoption of the ZiG by all stakeholders.

Ncube said this collective effort will contribute to the smooth transition towards a more stable economic environment.

“The Ministry of Finance, Economic Development and Investment Promotion is pleased to announce the transition from the Zimbabwean Dollar (ZWL) to the new currency, the Zimbabwe Gold following the recent announcement of the 2024 Monetary Policy Statement by the Governor of the Reserve Bank of Zimbabwe on April 5, 2024.

“We call upon all MDAs and the private sector, including retailers and service providers, to accept the ZiG in all financial transactions, including payments of salaries as well as for procurement.

“As government continues to configure its Public Finance Management System to facilitate revenue collection and payment for goods and services in local currency.

“Furthermore, unless there is specific legislation allowing charges or fees to be collected in USD only, all collections by government and the private sector shall be made in ZiG or any of the currencies in multi-currency basket without insisting on a specific type of currency or indexing invoices to the USD.

“This is supported by a pool of gold and foreign exchange reserves at the RBZ which is more than adequate to back the local currency money supply in circulation. The availability of such reserves will ensure that all bonafide and legitimate requests for foreign exchange made through banking system will be fully satisfied,” he said.

Professor Ncube also said that government will soon introduce the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services.

“It should be noted that since the exchange rate is market determined, there is no basis for private and public organisations and economic agencies to use any other exchange rate in the pricing of their goods and services other than the prevailing average interbank foreign currency selling exchange rate as published by the RBZ.

“The ZiG is a gold currency that has been introduced as part of government efforts to stabilise the economy, restore confidence in the financial system and provide a conducive business environment.

“In order to stabilise the value of the ZiG, government has introduced a liberalised foreign exchange market where the exchange rate is freely determined by the banking system based on demand and supply,” the Minister revealed.