The World Bank has certified the international currency code ZWG for Zimbabwe Gold (ZiG), granting it a unique identity among global currencies, the Reserve Bank of Zimbabwe (RBZ) announced.
The central bank indicated that the minor units of ZiG will be called cents. Currently, ZiG has notes in denominations of 1ZiG, 2ZiG, ZiG5, ZiG10, and ZiG20, with ZiG50, ZiG100, and ZiG200 notes to be introduced soon.
Backed by precious metals, mainly gold, and foreign currency, ZiG has a cumulative value of approximately US$300 million, with around US$80 million worth of ZiG in circulation.
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Introduced at a rate of ZiG13.66 to the US dollar, the currency traded at ZiG13.60 yesterday, showing a stability that the previous Zimbabwe dollar lacked.
The RBZ replaced the volatile Zimbabwe dollar with ZiG after the new Governor, Dr. John Mushayavanhu, presented the 2024 Monetary Policy Statement on April 5. The previous currency code, ZWL, for the Zimbabwe dollar, will be phased out by the end of August 2024.
Dr. Josephat Mutepfa, RBZ’s Director of Financial Markets, National Payment Systems, and FinTech Department, communicated the World Bank’s approval in a circular to the Bankers Association of Zimbabwe’s CEO, Fanwell Mutogo. Mutogo emphasized that this change is primarily administrative and does not alter current operations.
A currency code, as noted by banker Raymond Madziva, is crucial for distinguishing currencies and ensuring the accuracy and efficiency of international financial transactions.
The RBZ advises that both ZWL and ZWG codes will be used concurrently from June 25 to August 31, 2024, to facilitate system adjustments. From September 1, 2024, ZWL will no longer be recognized.
Banking sector players are urged to make necessary preparations for a smooth transition to the new currency code, ZWG.
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