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“All fuel sales will exclusively accept ZiG as payment”: Guvamatanga

“All fuel sales will exclusively accept ZiG as payment”: Guvamatanga

Finance, Economic Development, and Investment Promotion Permanent Secretary George Guvamatanga announced that all Government ministries, departments, and agencies will soon be mandated to accept ZiG payments. This directive comes amidst the recent introduction of ZiG, or Zimbabwe Gold, as the official currency of Zimbabwe, effective since April 8, 2024.

ZiG is backed by substantial reserves, including 2,522 kilograms of gold and approximately US$100 million in foreign currency held by the central bank. Despite these measures, the new currency has been met with widespread skepticism among Zimbabweans, reflecting a deep-rooted mistrust in the Reserve Bank of Zimbabwe (RBZ).

The skepticism traces back to the hyperinflation crisis of 2008 when the RBZ infamously printed Z$10 trillion notes, causing severe economic turmoil. This history has left many citizens wary of any new currency initiatives from the central bank.

ALSO READ: JUST IN: Reserve Bank of Zimbabwe Introduces New Currency “Zimbabwe Gold (ZiG)

Moreover, specific government departments, such as the Civil Registry Department responsible for passport issuance, previously refused to accept the precursor to ZiG, the Zimbabwe dollar. This refusal significantly contributed to the erosion of public confidence in local currency systems.

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Guvamatanga’s announcement signals a concerted effort to establish ZiG as a legitimate and widely accepted currency within government operations. However, overcoming deep-seated skepticism and restoring public trust in financial institutions remains a significant challenge for Zimbabwe’s economic landscape.

At a Monetary Policy Statement breakfast meeting held in Harare on Tuesday 2024, Guvamatanga clarified that Zimbabwe has not de-dollarized and continues to operate under a multi-currency system. He emphasized:

“The multi-currency regime was an agreed position between Government and industry and that is why industry is also using the US dollar as we speak today. So, in that journey, there will be a point where fuel will be fully sold in ZiG and all duties will be payable in ZiG.
There shall be a point where all Government ministries, departments and agencies are forced to accept the currency. We are going to be forcing them very soon. We have not de-dollarised, and we are still in a multi-currency system. It is a journey.”
The Reserve Bank of Zimbabwe (RBZ) announced that motorists will not have immediate access to purchasing diesel and petrol using the new currency. This information was provided in a document addressing inquiries about ZiG. Additionally, the central bank clarified that ZiG is currently not internationally recognized and cannot be utilized for international transactions due to its lack of convertibility at this stage.
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