ZiG payments now  account for 40% of transactions- 80% of government trade

Payments in Zimbabwe’s latest currency, the Zimbabwe Gold, now account for 40% of transactions, up from 20% when the currency was introduced in April, Finance permanent secretary George Guvamatanga said yesterday.

Most of the transactions are electronic.

Guvamatanga said the government uses the ZiG for 80% of its trade.

The ZiG has stood its ground against the United States dollar and is still trading at under 14 to the greenback though some reports say it is trading at as low as 22 to one on the black market.

Central Bank governor John Mushayavanhu had targeted to reach 40% by the end of next year and 50% by end of 2026. 

He says once the ZiG accounts for 50% of payments there is no need to legislate for a mono-currency because the ZiG will work its way up.

The ZiG is backed by foreign currency reserves and a basket of minerals which makes it attractive especially on the international market. 

Locals, who have been clobbered more than once and have lost their savings, remain sceptical about the new currency.

Business, however, has welcomed the new currency with most listed companies hailing it for bringing stability in the market.

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