Staff Reporter
Operators within the country’s fuel industry are expected to soon accept payments in local currency, as they will be mandated to fulfil half of their financial obligations on Quarterly Payment Dates (QPDs) using the ZiG currency.
A source from the Reserve Bank of Zimbabwe (RBZ) who preferred anonymity said that this measure would increase demand and enhance the credibility of ZiG.
“This mandate stipulates that fifty percent of their financial obligations be settled quarterly using the local currency, heralding a pivotal shift towards strengthening the ZIG currency's credibility and invigorating demand within the economic sphere,” said the source.
The source disclosed ongoing discussions with the Zimbabwe Revenue Authority (ZIMRA) to bolster the technical readiness of its systems for seamless payment processing within the ZIG framework.
“This collaborative endeavour aims to enhance ZIMRA's infrastructure, ensuring it possesses the necessary technological capabilities to facilitate efficient transactions and contribute to the smooth functioning of financial activities nationwide,” added the source.
A member of the Liquid Petroleum Gas Safety Association of Zimbabwe, Wilson Chipato, emphasized the transformative impact of the policy, stating, "Companies will soon be mandated to allocate fifty percent of their tax payments in ZIG currency, thereby stimulating demand."
Chipato elaborated on the mechanisms through which this could be achieved, including direct transactions such as purchasing fuel using ZIG currency or converting US dollars into ZIG currency through banks.
According to Chipato, beyond fulfilling tax obligations, the policy will encourage companies to actively engage with the ZIG economy, potentially fostering its growth and stability.
Chipato highlighted the ripple effect, noting, "With businesses actively seeking out ZIG for tax payments, its value is bound to surge, solidifying its position as a cornerstone in the financial landscape."
This regulatory imperative to accept ZIG currency payments and settle financial commitments using it is poised to catalyse significant changes in the local economic landscape.
By instilling confidence in the local currency and driving its adoption among businesses, it sets the stage for a paradigm shift towards a more robust and sustainable financial ecosystem.
