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Wednesday, May 29, 2024
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Demand for small ZIG notes and coins up

Story by Tendai Munengwa

THE demand for more small ZiG denominations is overwhelming supply in the small to medium enterprises sector, with vendors imploring the Reserve Bank of Zimbabwe to release more coins for change and easy transacting.

While the golden principle of money supply stipulates that it must be scarce, vegetable vendors and other SMEs appealed to the Reserve Bank of Zimbabwe to release more small denominations especially coins for change and easy of doing business.

“We are hearing about it, but it’s not available here at vending sites. We are eagerly waiting for it because it helps us for change to our customers, said a vendors at easily shopping centre,” said a vendor.

“Because of lack of small denominations, we end up forcing our customers to take things which they don’t like for the sake of transacting, so if more ZiG is circulated it will make our business easier,” noted another.

Others who have used the ZiG are satisfied with the new currency’s bargaining power.

“The ZiG has come as a relief commuting public. We can now get change unlike in before when the Kombis were manipulating us as they could not give us change,” said a car wash vendor in Harare.

“We want the ZiG coins to be availed on quantities so that when I sell water I can give you your change rather that forcing customers to take another bottle for the sake of balancing,” a water vendor explained.

The Reserve Bank of Zimbabwe introduced the new ZiG currency on the 5th of April in a move expected to solve exchange rate volatility and promote the use of local currency.

According to the central bank, the ZiG is fully-backed by a combination of gold and other precious minerals, including foreign currency reserves.

The central bank went on to release ZiG notes and coins on the 30th of April, amid optimism of currency value preservation, smooth transactions and stability.

The RBZ has also indicated it has reserved worth over US$100 million in foreign currency, including 2,5 tonnes of gold worth US$185 million.

As the Reserve Bank of Zimbabwe releases more ZiG currency into circulation, it is the expectation of vendors that the big chunked will be in small denominations for easy transacting.

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