Lets fully support ZiG
The Zimbabwe Gold (ZiG) notes and coins, which were unveiled on April 5, began to circulate this week as legal tender in values ranging from ZiG1 to ZiG 200.
We implore people and companies to embrace the new money in its entirety.
It is anticipated that the rollout of ZiG coins and notes will stabilize the market.
Nonetheless, it is increasingly clear that prices for goods and services are rising as Zimbabwe’s annual inflation increased to 57.5% in April 2024 from 55.3% in March, mostly due to the ongoing instability of the exchange rate.
Although, government is banking on ZiG, which is backed by gold and other minerals and foreign currency reserves, which appreciated against the greenback some few days after it was unveiled on April from ZiG13.56:US$1 to ZiG13.25:US$1, the local currency on Tuesday this week fell to U$13:43 on the official market.
On the parallel market, ZiG is now trading at between ZiG 23 and ZiG28 against the greenback.
Most companies are using the parallel market rate to price their products, fueling a spike in prices of goods and services.
This led to a jump in inflation as well.
According to the government, ZiG will end market volatility.
Government has vowed to send a very powerful message to the foreign currency cartels, who have been causing economic devastation with their speculative machinations.
In the past, the forex dealers’ charges appeared to be quite light as they were promptly granted bail even though they were causing significant harm to the economy.
Vice President Constantino Chiwenga declared last week that ZiG will remain in place and that anyone found in violation of the Exchange Control laws will be sent to a prison.
He even advised forex dealers to arm themselves for battle.
We implore Zimbabweans to embrace the new currency wholeheartedly.
Even William Ruto, the president of Kenya, hailed ZiG and described it as a bold move by the Zimbabwean government that should promote economic growth during his visit to Zimbabwe last week.
