News / National
ZiG acceptance grows across Zimbabwe economy
24 Jul 2024 at 08:54hrs | Views
The Reserve Bank of Zimbabwe (RBZ) has observed a growing acceptance of the local currency, ZiG, by both businesses and individuals, which aligns with the central bank's efforts to stabilize the economy.
Speaking at an Institute of Chartered Accountants of Zimbabwe (ICAZ) event in Victoria Falls, RBZ deputy governor Dr. Innocent Matshe highlighted the progress in boosting demand for ZiG, crucial for curbing inflation and restoring confidence in the local currency.
A mandatory requirement for government departments to accept all forms of payment in the multi-currency basket, including ZiG, has driven this acceptance. Dr. Matshe noted the significant increase in ZiG usage across various sectors, indicating rising confidence in the currency.
Initiatives like expanding Homelink service centers have improved cash availability, with over ZiG250,000 accessed daily at these sites, and collaborations with retailers to facilitate coin circulation have addressed change issuance challenges.
Preliminary data from a central bank survey showed most formal shops, including hardware stores and pharmacies, now accept ZiG payments. The growing stability and predictability of ZiG, introduced by central bank chief Dr. John Mushayavanhu in April, contribute to this acceptance. The ZiG Perception Survey indicates a progressive willingness among businesses and households to be paid in ZiG.
While challenges remain, the progress in promoting ZiG acceptance is seen as vital for macroeconomic stability. The RBZ is committed to policies enhancing the currency's position in the economy, with general acceptance being crucial for economic stability. Dr. Matshe also revealed declining inflation expectations, with month-on-month inflation projected below 19% and annual inflation between 2-5%.
Positive economic growth prospects for 2024 are anticipated, driven by robust mining activity and exchange rate stability. Continued foreign exchange inflow is expected to support exchange rate stability, and favorable banking sector deposit rates are conducive to economic growth. Confidence in the banking sector remains strong, with growth in foreign and local currency deposits expected to boost confidence further in the ZiG environment and promote a savings culture.
Speaking at an Institute of Chartered Accountants of Zimbabwe (ICAZ) event in Victoria Falls, RBZ deputy governor Dr. Innocent Matshe highlighted the progress in boosting demand for ZiG, crucial for curbing inflation and restoring confidence in the local currency.
A mandatory requirement for government departments to accept all forms of payment in the multi-currency basket, including ZiG, has driven this acceptance. Dr. Matshe noted the significant increase in ZiG usage across various sectors, indicating rising confidence in the currency.
Preliminary data from a central bank survey showed most formal shops, including hardware stores and pharmacies, now accept ZiG payments. The growing stability and predictability of ZiG, introduced by central bank chief Dr. John Mushayavanhu in April, contribute to this acceptance. The ZiG Perception Survey indicates a progressive willingness among businesses and households to be paid in ZiG.
While challenges remain, the progress in promoting ZiG acceptance is seen as vital for macroeconomic stability. The RBZ is committed to policies enhancing the currency's position in the economy, with general acceptance being crucial for economic stability. Dr. Matshe also revealed declining inflation expectations, with month-on-month inflation projected below 19% and annual inflation between 2-5%.
Positive economic growth prospects for 2024 are anticipated, driven by robust mining activity and exchange rate stability. Continued foreign exchange inflow is expected to support exchange rate stability, and favorable banking sector deposit rates are conducive to economic growth. Confidence in the banking sector remains strong, with growth in foreign and local currency deposits expected to boost confidence further in the ZiG environment and promote a savings culture.
Source - The Herald
