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Friday, July 12, 2024

ZIM currency code changes from ZWL to ZWG

Story by Stanley James, Business Editor

ZIMBABWE’S international currency code has been changed to ZWG, replacing the ZWL after the introduction of the new Zimbabwe Gold (ZiG) currency.     

The introduction of the new currency, the Zimbabwe Gold, on the 5th of April has seen monetary authorities forging ahead with measures to consolidate its gains and maintain stability.    
In a letter directed to the Bankers Association of Zimbabwe, Reserve Bank of Zimbabwe Director for Financial Markets, National Payment Systems and Fintech, Dr Josephat Mutepfa revealed that the switch of the international currency code to ZWG is with effect from the 25th of this month.           

Dr Mutepfa said the move is being made after the World Bank approved the central bank’s request to switch the international currency code.  
All financial institutions are therefore being directed to switch to the new international currency code, the ZWG, by the 1st of September this year.           
The country’s new medium of exchange the ZiG which replaced the Zimbabwe Dollar is being described by central bank authorities as an important element in addressing exchange rate volatility, curtailing inflation, and restoring macroeconomic stability.     

A global business journal defines a structured currency such as the ZiG as money that is pegged to a currency basket and backed by a bundle of foreign assets, including precious minerals. 

In line with world standards, whenever a new currency is introduced, a new currency code is denominated to allow for the recognition of the new currency.

Examples of other codes include the South African rand (ZAR) and the British Pound (GBP), among others.

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