Some traders have started accepting ZiG currency after banks successfully configured their digital platforms and the shops reset their prices in the new currency.
Other traders are now at an advanced stage to migrate to the use of the new local currency before tomorrow’s deadline.
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Book NowMainstream large retailers were transacting in both ZiG and foreign currency by allowing those with bank cards to swipe after the banks completed configuring their systems so the cards would work.
According to a market update by Zimswitch, which has already completed the roll out of the ZiG processing system, about 15 banks were live with the ZiG by yesterday.
These included NMB Bank Limited, POSB, InnBucks, Empowerment Bank, Stanbic Bank, ZB Financial Holdings, Nedbank, CABS, First Capital Bank, Ecobank, One Money, O’mari, My Cash, African Century, EcoCash and Steward Bank, with the few remaining indicating that they would follow suit, and beat tomorrow’s deadline.
Zimswitch is the country’s sole national payments platform and clearing house. It was incorporated in 1994 to process domestic card-based, both ATM and point of sale “swipe”, and EFT transactions among member financial institutions in real-time online.
EcoCash Holdings, the largest local mobile money platform, notified its customers yesterday that it had successfully converted Zimbabwean dollars to ZiG currency although there were delays in letting people spend their ZiG balances on EcoCash products.
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu last week introduced the new currency which is backed by the country’s gold and foreign currency reserves.
ZiG notes and coins will start circulating on April 30, but the electronic banking systems should be operational starting tomorrow across all platforms and all service providers, with the last banks and shops coming on line by then.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said most retailers and wholesalers had completed the migration from the old system to the new. For the retail trade the migration was simple, largely resetting prices in their databases, but the connection with customer debit cards once Zimswitch was up and running required the issuing banks and mobile money providers to be processing ZiG transactions so the money could flow from customer accounts to retailer accounts. This has been the delay.
“Retailers and wholesalers are ready but it looks like swipe cards are not yet working. Most have been assured by their banks that tomorrow it could be all systems go,” said Mr Mutashu.
Harare City Council has also indicated that they had successfully changed over from the Zimbabwe dollar to ZiG.
“The city would like to inform its valued residents that following the currency changeover, all customer account balances have been converted to ZiG with immediate effect. The city is already transacting in Zig and other currencies in line with the multi-currency system. All historical transactions on customer accounts are available in Zimbabwe dollar for inspection, verification and accurate conversion to ZiG. Residents are encouraged to pay their bills both on our online platforms as well as in our banking halls,” said City of Harare town clerk, Engineer Hosiah Chisango.
Tobacco farmers are upbeat on the coming of ZiG currency which they felt would help contain the parallel market and maximise value for their crops.
In separate interviews at the auction floors yesterday, tobacco farmers said they have hope in ZiG currency and called for more educational campaigns for a better understanding of the new currency.
Mr Simon Masawa of Karoi said there is high hope that the new currency can endure inflationary pressures given that it is backed by gold among other assets.
“From my understanding, the ZiG currency is better although we are still waiting to trade. Transacting using the old currency was a bit tricky because it was susceptible to inflation. It was constantly depreciating and compromising operations but now we are happy that we are assured of a stable currency,” he said.
Mrs Jane Mende of Bindura said if the ZiG currency performs better than the previous currency, tobacco production output will rise significantly.
“We have hope that this new currency has more value than the old one. We appeal to banks to speed up the configuring processes so that we embark fully on trading,” she said.
Mr Themba Mutikani of Mt Darwin said 25 percent of local currency that is paid to tobacco farmers will be meaningful if there is strict compliance with value preservation measures announced by the Reserve Bank in its monetary policy statement.
“There is hope if the currency remains stable. As farmers we are happy that the Government has introduced a local currency that has more value,” he said. Premier Tobacco Auction Floor executive director Mr Owen Murumbi said the new currency will benefit farmers as they will get the full value of their money.
Herald
