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Wednesday, May 22, 2024

Banks expected to be fully ZiG compliant by Friday

Story by Stanley James, Business Editor

THE Bankers Association of Zimbabwe (BAZ) has revealed that 13 out of 16 banks have successfully converted Zimbabwe dollar balances into the new Zimbabwe Gold (ZiG) ahead of the Friday deadline.

In an interview with ZBC News in Harare this Thursday, Bankers Association of Zimbabwe (BAZ) Chief Executive Officer, Mr Fanuel Mutogo noted that the conversion system which is still in motion has set the tone for full migration to ZiG-denominated accounts.

It has also emerged that three banks yet to migrate to ZiG fully hold the biggest deposits, hence, it is taking a bit longer to complete the conversion exercise.

“In terms of our membership I can safely reveal that we have 16 banks and out of that 13 have fully managed to comply meaning that we are left with three due to the nature of their deposit base however by the end of the day today we are expecting all banks to be fully compliant, right now the transactions cannot be undertaken because the interbank system requires all banks to be fully ZiG compliant,” he said.

The Bankers Association chief explained the modalities of the conversion system to ensure smooth ZiG transactions.

He added, “We started over the weekend, but the move has come when we did not expect it to take longer however for the sake of a smooth transition in protecting depositors’ money and future transactions, we are still satisfied with the progression rate in as much as the entire financial sector is concerned.”

The central bank introduced the new Zimbabwe Gold (ZiG) currency, pegged to a specific exchange rate, and backed by a bundle of foreign exchange assets such as gold.

The central bank is expected to roll out the new ZiG notes on the 30th of this month.

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