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Thursday, July 18, 2024

ZiG firms against major currencies

Story by Stanley James, Business Editor

THE Zimbabwe Gold (ZiG) continues to firm against the United States dollar since its introduction on Friday last week due to strong gold prices, raising hopes for consumers as they embrace the new currency.

Statistics contained in a central bank report shows that the newly introduced gold backed currency has recorded a one percent gain since Friday last week.

The information shows that at its launch the Zimbabwe Gold was trading at 13,56 to US$1 and it has appreciated to around 13,45 to US$1 as of Friday this week.

The trend is being attributed to strong global gold prices which were hovering at over 2 200 United States dollars an ounce at the end of last week to more than 2 300 United States dollars by this Friday.

The ZBC News observed that retailers are now indexing their prices to the ZiG in the multicurrency basket using market determined rates with consumers transacting in the new currency.

“We just want a stable currency to maintain stable prices,” said a consumer.

“I’m already waiting for ZiG notes and coins. It’s good for a country to have it’s own currency,” added a consumer.

Central bank authorities have assured the market that the issuance of ZiG will be linked to available foreign reserves.

Demand for ZiG is expected to increase as government has directed industry and commerce to settle fifty percent of their Quarterly Payment Dates (QPD) in June this year using the local currency.

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