Staff Reporter

The Reserve Bank of Zimbabwe (RBZ) Governor, Dr. John Mushayavanhu, delivered a stern warning today to banks allegedly undermining the circulation of the ZiG currency.

Speaking at a ZiG Awareness and Feedback meeting with transport operators at the RBZ headquarters, Dr. Mushayavanhu asserted the central bank's commitment to addressing these issues decisively.

This was after a transport operator highlighted the difficulties encountered in acquiring ZiG hard cash, recounting his fruitless visits to three different banks. This prompted Dr. Mushayavanhu to announce that the RBZ would "pounce heavily" on any banks found to be deliberately restricting the availability of ZiG currency.

"The Central Bank will not tolerate banks that claim they have no ZiG hard cash float. We have printed sufficient ZiG cash to circulate in the market and will continue to do so if necessary," Dr Mushayavanhu emphasized.

Transport operators also raised concerns about the shortage of small denominations of the ZiG, which leaves them unable to provide change to commuters.

 In response, Dr. Mushayavanhu revealed a new directive for Homelink, a financial services company, to supply change at bus terminals in hard currency. "This measure aims to ensure that operators and commuters have access to the smaller denominations needed for daily transactions," he explained.

Addressing further concerns about the availability of the ZiG currency, Dr. Mushayavanhu reassured that the Reserve Bank printed enough ZiG cash to go around and will keep printing more if the need arises.

“The RBZ introduced coins in smaller denominations, such as ZiG1, ZiG2, and ZiG5, and these amongst other ZiG notes will and should continue to be circulated," he stated.

In addition to these immediate actions, Dr. Mushayavanhu highlighted the importance of transitioning to digital transactions.

 "Zimbabwe has embraced digital financial solutions, including swipes and mobile money. We encourage transport operators to equip their vehicles with swiping machines to facilitate smooth transactions and minimize reliance on hard cash," the Governor noted

The Governor's remarks underscore a robust approach to ensuring the smooth circulation of the ZiG currency and addressing the operational challenges faced by transport operators and the general public.

Meanwhile, the ongoing ZiG awareness and feedback meetings have been well-received by stakeholders and service providers.  Yet another meeting has been scheduled with retailers and the Governor, all in an effort to iron out pressing issues in that sector.