News / Local
Mnangagwa's son warns against Nehanda ZWL$50 note snub
12 Oct 2023 at 01:32hrs | Views
Deputy Minister of Finance and Investment Promotion, Kudakwashe Mnangagwa, issued a warning to businesses refusing to accept the ZWL$50 note, emphasizing that they could face substantial penalties. He made this statement while addressing questions from lawmakers regarding businesses rejecting the ZWL$50 note.
Mnangagwa encouraged lawmakers to report instances of businesses not accepting the local currency to the Financial Intelligence Unit or the ministry for investigation and potential sanctions. He stressed that the country currently uses the local currency alongside a multi-currency regime, which is set to conclude in 2025. Therefore, business entities should not refuse the local currency.
The deputy minister also informed the House and the public that the government is actively addressing this issue. In addition to the ZWL$50 note, Zimbabwe has introduced ZiG (digital currency) as an alternative and a store of value for those who may encounter difficulties using bond notes.
Market analysts are skeptical about the longevity of the ZWL$50 note, as informal traders and commuter transport operators have been reluctant to accept it. The ZWL$2, ZWL$5, ZWL$10, and ZWL$20 notes have already become obsolete in the recent past, and the country's local currency has been depreciating steadily, losing more than 18% of its value since the August 23 and 24, 2023 elections. As of now, the exchange rate stands at US$1 to ZWL$5,633,8332 on the interbank market.
President Emmerson Mnangagwa reintroduced the Zimbabwe dollar in 2019 after a decade of dollarization.
Mnangagwa encouraged lawmakers to report instances of businesses not accepting the local currency to the Financial Intelligence Unit or the ministry for investigation and potential sanctions. He stressed that the country currently uses the local currency alongside a multi-currency regime, which is set to conclude in 2025. Therefore, business entities should not refuse the local currency.
The deputy minister also informed the House and the public that the government is actively addressing this issue. In addition to the ZWL$50 note, Zimbabwe has introduced ZiG (digital currency) as an alternative and a store of value for those who may encounter difficulties using bond notes.
Market analysts are skeptical about the longevity of the ZWL$50 note, as informal traders and commuter transport operators have been reluctant to accept it. The ZWL$2, ZWL$5, ZWL$10, and ZWL$20 notes have already become obsolete in the recent past, and the country's local currency has been depreciating steadily, losing more than 18% of its value since the August 23 and 24, 2023 elections. As of now, the exchange rate stands at US$1 to ZWL$5,633,8332 on the interbank market.
President Emmerson Mnangagwa reintroduced the Zimbabwe dollar in 2019 after a decade of dollarization.
Source - newsday
