Staff Reporter
The Zimbabwe Gold (ZiG) currency continues to strengthen, and its acceptance across a broad spectrum of the economy is gaining momentum.
A recent survey by Scientific Surveys and Strategic Forecasting (SSFU) revealed that more than 70 percent of business entities, including Government and quasi-Government institutions, are now conducting transactions using the ZiG.
The survey further revealed that major retailers and wholesalers such as OK Zimbabwe Limited, TM Pick n Pay, Spar, Choppies, and Innscor fast food outlets were accepting the ZiG currency and adhering to the formal exchange rate of USD1:ZIG14.5.
However, discrepancies have been observed among certain rogue wholesalers like Gain Cash and Carry, N Richards, Metro Peach, and Mahomed Mussa, who either manipulate exchange rates or reject Zig for select products.
Clive Mpofu, a local customer, pointed out the challenges faced by consumers.
"Wholesalers are manipulating prices in USD, with implied exchange rates reaching ZiG 18–20. This price manipulation is a major concern for ordinary citizens," said Mpofu.
Mpofu also noted that some retailers, such as Colcom, are imposing quantity restrictions on ZiG purchases.
In the hardware sector, while major suppliers like Halsteds and Electrosales accept ZiG at the official exchange rate, Bhola Hardware has been noted to use an implied exchange rate of USD1: ZiG 16.
Educational institutions are also adapting to the new currency landscape.
Government schools notably, Mabelreign Girls High, Daramombe High School, and Goromonzi High School are accepting ZiG at the prevailing interbank rate.
However, private schools, like Borrowdale Primary, Kutama High School, Gateway, and St. Georges, are exclusively accepting USD fees.
State and Private Universities including Solusi University, Chinhoyi University, Midlands State University, Zimbabwe Open University, Catholic University in Zimbabwe, and the University of Zimbabwe are accepting ZiG currency at the prevailing interbank rate, albeit with a 60:40 preference for USD.
President of the Confederation of Zimbabwe Retailers (CZR), Denford Mutashu, highlighted the broader implications of these economic dynamics.
"The demand for USD in significant sectors like education reflects the ongoing forex imbalances. The Government needs to further stimulate the ZiG's acceptance in both the public and private sectors to balance these disparities," Mutashu stated.
Meanwhile, the adoption of the ZiG currency is a complex but crucial development for Zimbabwe’s economy, showing promising growth but also highlighting the need for careful management to foster wider acceptance and stability.
