Story by Stanley James, Business Editor
THE growing stability of the Zimbabwe Gold (ZiG) is boosting confidence in Zimbabwe’s economy, with businesses increasingly adopting the domestic currency in their audited financial statements.
This shift comes as declining inflation and improved monetary conditions enhance the reliability of the Zimbabwe Gold (ZiG), making it easier for both listed and non-listed companies to report their financial performance using the local unit.
Even firms that predominantly transact in the United States Dollar are now facing minimal challenges in converting their financials into the domestic currency, reflecting growing trust in its stability.
Chairperson of the Zimbabwe National Chamber of Commerce Mashonaland Chapter, Mr Ephraim Chawoneka, said the development signals confidence in the country’s monetary policy direction.
“Any economy has its own system or benchmarks, and what is happening indeed reflects the extent to which monetary authorities are serious in ensuring that the ZiG continues to gain ground because of the stability. It also becomes easy to use the financials in determining the overall growth of the related firms,” he said.
With regulations now compelling companies to use the domestic currency as the functional unit in financial reporting, expectations are high as the full-year audited financial reporting season gathers pace.
Past President of the Bankers Association of Zimbabwe, Mr Lawrence Nyazema, said the trend is becoming more pronounced among listed firms.
“Most of the listed companies are releasing their full year audited financials and interestingly you can see that the ZiG is being used as the key denominator for the financials. This means there is growing confidence in the use of the domestic structured currency at a time when the nation is focusing on ensuring the domestic currency emerges as a key currency of choice,” he said.
Introduced in April 2024, the Zimbabwe Gold (ZiG) has maintained relative stability, supported by efforts to build reserves. Authorities are also set to roll out upgraded notes, expected to begin circulating on Tuesday, as part of ongoing measures to strengthen the currency.
The increasing adoption of the ZiG in financial reporting marks a significant step towards consolidating its position as a dependable unit of account within Zimbabwe’s evolving economic framework
