ZiG kicks off week on a positive note

Zimbabwe’s currency, the ZiG, kicked off the week on a positive note after firming to 13.4823 from a low of 13.6757 a week ago.

The currency, which is just over a month old, has so far held its own despite scepticism from most Zimbabweans who still prefer the United States dollar.

Reserve Bank of Zimbabwe governor John Mushayavanhu has repeatedly stated that people will scramble for the local currency next month when quarterly tax payments are due.

The taxes are due on 25 June.

Zimbabwe has directed that half of the taxes be paid in the local currency. Taxes contribute US$300 million which means US$150 million will have to be paid in ZiG. The country has only US$80 million in local currency in circulation.

Deputy Finance Minister David Mnangagwa, one of the President’s sons, says the taxes will force companies to sell a quota of their products or services in local currency because they will not be able to raise the local currency they require from their banks.

The ZiG is currently the strongest local currency in the Southern African Development Community.

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