“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.
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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.
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:
