RBZ's 43% Devaluation Leads To Widespread Rejection Of ZiG Currency
5 months agoTue, 01 Oct 2024 06:05:10 GMT
Some supermarkets, vendors, commuter omnibus operators, and tuckshops are reportedly rejecting payments in the ZiG currency following a 43% devaluation effected by Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu on Friday.
As a result, traders are now only accepting payments in USD, leaving many Zimbabweans, who have previously lost savings due to currency changes, in a difficult position.
A tuckshop operator in Dzivarasekwa Extension, Harare, told NewZimbabwe.com, “We don’t know what exchange rate to use, making it hard for us to continue accepting the ZiG. What if we accept it and it loses value while in my possession?”
Some transport routes that previously charged ZiG10 now cost US$1, as operators fear that the coins will be dumped on them.
Critics argue that the Zimbabwean government has effectively rejected its own currency from the start, as the ZiG cannot be used for essential transactions like passport applications, customs duties, rentals, or fuel purchases.
Introduced in April 2024 at a rate of ZiG13.50 to US$1, the ZiG was initially promoted as a solution to Zimbabwe’s ongoing economic crisis, but it has since seen heavy devaluation on the black market.
On September 27, the RBZ set the official exchange rate at ZiG24.3 per US$1, up significantly from ZiG14.1 per US$1.
In an interview with the state-controlled Sunday Mail newspaper, RBZ Governor John Mushayavanhu explained that the devaluation was in response to an artificial spike in demand for foreign currency and inflationary pressures.
Meanwhile, journalist and government critic Hopewell Chin’ono remarked, “The Zimbabwean local currency is now dead, as many local retailers are pricing exclusively in US dollars to avoid losses.” He added:
When a local currency loses its value and citizens have no confidence in it, this outcome is inevitable.
The Zimbabwean government rejected its own currency from day one for transactions such as passport applications, customs duties, fuel, and more.
When a government rejects its own currency, it would be irrational for anyone else to have confidence in it.
This is precisely what is happening, compounded by excessive money printing to facilitate the looting of public funds.
When a government itself does not demonstrate faith in its own currency, it sends a clear signal to the public that the currency is neither reliable nor stable.
The lack of confidence in the local currency has led to the dollarisation of the economy, with Zimbabweans preferring a more stable currency, like the US dollar, for transactions and as a store of value.
You can’t blame them, Zimbabweans have been scammed four times by the corrupt ZANU PF regime, losing all their savings.
This time around, they have lost half of their savings that were in the local ZIG currency.
More: Pindula News
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49 Comments
Anonymous · 5 months ago
How can we expect traders to accept the currency that is not being accepted by service stations. It can only be accepted by locals if only fuel companies and zera starts accepting our local currency.
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Anonymous · 5 months ago
Zvaramba Muthuvi,Guvarematanga, Mushayamazano naMangunguna chiregai zvenyu...
big fat · 5 months ago
even if all of you here are appointed governors of rbz as long as the elephant is still in the room then apana patirikuenda
nzuzu · 5 months ago
takakuwudzai azvishande zve zigi izvi.Ivo homwe dzavo dzizere ma usd chete pafungei tirukupusiswa.
@Vhedza · 5 months ago
Speculation mentalities are now haunting the nation at large, now its time for us to wake up from our sleep and rise to reality and do away with speculative tendencies.
Corruptmore Looto · 5 months ago
Government is too blame for all this mess, they spend more money than they have thereby creating deficits and add the fact that their budget isn't supported by the IMF or World Bank because they defaulted back in 1999. They just pump money into the economy without sufficient production, of course it's going to cause inflation as there will be more money for less goods and services soo the market balances that by increasing prices, this is just basic economics, I don't know why you Zanu dunderheads constantly blame saboteurs when you are the problem, as for speculative activities they are being fueled by economic instability, foreign currency shortages, monetary policy inconsistencies, fiscal policy mismanagement and a lack of transparency and confidence. Those reasons can be fixed if a competent government takes over soo stop blaming economic ghosts for sabotage and own up to your failures.
shadowwalker · 5 months ago
the zig was performing fine, the stiff measures were necessary but they failed to manage the pressure from the parallel markets. The governor should have kept a firm hand and not succumb to critics pertaining the currency
Anonymous · 5 months ago
Zig never did well. The Governor and the government know the source of these problems. Government is spending more than they collect in taxes and other revenues; that deficit is the source of all these problems. Its good to put up good infrastructure like roads and rural gardens etc but the government should learn when to stop spending what they don't have. This behaviour is dislocating all structures. When they slashed balances by 2500 to switch to Zig and now devalue the same currency by 43% does the government ever think about the poor, pensioners and young people who need to rebuild their lives or the thought is just on them and their crowd cheers who believe in handouts, because to these cheerleaders the cost is just zero. How can anybody build any economy under such conditions.
worried citizen · 5 months ago
stiff ipi yaunotaura,kuti mapurisa batai munhu arikutsvaga rent in us abadarwa zig as payment ndozvaunoti stiff measures,pane pawakamboona porisi as a measure to reduce inflation let alone Cid,we are going nowhere senyika
Anonymous · 5 months ago
Idjit! Just nothing more to add to your ****ic "the Zig was performing well" Halfwit!!!!
Chibaba · 5 months ago
Zig is backed by AK47, command economy 👉👉 there is no gold at the RBZ vaults.
2Anonymous · 5 months ago
Wapedza zvako Chibaba..
flush the crap down the toilet · 5 months ago
after having a crap, i wave bye bye to zig as i flush it down the toilet
Anonymous · 5 months ago
afer taking a crap i say bye bye zig as i flush the toilet
mabhisvo · 5 months ago
zig nothing
Erudite · 5 months ago
The anarchists and malcontents have taken advantage of the carefully crafted devaluation to unleash their true intentions..The ZiG is just going through a slight downturn as clearly explained by the governor so no need to panic yet the usual fear mongering hordes have descended upon us and are urging gullible Zimbabweans to dump the ZiG in exchange for a currency whose monetary policy they do not control....The Erudite is displeased by the actions of the masses rejecting the ZiG.... People should just tighten their belts and brace the stormy seas and eventually we will reach calmer waters.... Erudite out
shurushuru · 5 months ago
if you see the devaluation as a 'slight down turn' then you're myopic! get your faculties expeditiously examined.
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2Anonymous · 5 months ago
Easier said than done. The Governor said its pegged to gold and then? Gold prices go up then Zig goes down, that is just hogwash for lack of a better. Its mismanagement, we lose life savings through these suicidal policies. Why was the devaluation not discussed instead of just ambushing people. That is failure, full stop.
Sona · 5 months ago
Is 44% a slight downturn?? kwana iwe
Anonymous · 5 months ago
Ndopaunotoona kuti munhu arikutaura uyuu i****. Test in peace ZIG
Anonymous · 5 months ago
Saka tiikuenda kupi now?
Corruptmore Looto · 5 months ago
Trust, trust and trust, without that, then what the heck are you doing. Money is just paper, the value is in the strength of industries, sound governance, policy stability and most importantly trust, the sooner the regime realises this the better it will be for everyone. My naked opinion to them is they should just step down and call for UN administered elections as no one trusts the captured Zanu Electoral Commission
Panganai Javha · 5 months ago
ZiG ndoritora ndoriBurner
👀Pindula watch · 5 months ago
I know we are all political and economic commentators and Zimbabwe is a free country to express opinions and views, But pane pamwe patomborashika so, look, we have been in this myriad quad mire impasse of ZiG and it's associate currencies,
What revelations are we trying to expose to the whole world about our ineptitude
Currencies do face down turns when seasons are down but gets worse when we shut it of incessantly, the question is, what then, should we continue being a basket case for others to shop our shelves, minerals finish
We have a situation compounding, this low performance but resilience is key, South Africa never shy away if a rand I'll performs, they foster it's strength, so does Zambians with or without zesa kwacha maintain it's statue
Isu manje kungo vhuruvhuta kamweya chete we lose focus and start denigrading the currency to nothing
What we forget is festive season is coming, and that gold backup Ness should not be a yard stick of measure the the ZiG value, infact this affirmation is a chance to acquire it's expansive use rather, that is what the ZiG gold backed want to do
Once that gets completed no sooner than we see ZiG strengthening powers
apes · 5 months ago
use your brain do you think Ed loves zig noo they are looting
1
Sir African · 5 months ago
You are nuts and your imput is incoherent.You should not blame us for rejecting the gold backed money as the government which introduced did at inception.
We have lost our life savings four(4) times,not once or twice but four times.Just imagine,a life time of working for nothing.What legacy are you going to leave your children or your grand children?Think.
1
Tommaso · 5 months ago
Have you been living under a rock since 1997, only a mad person would trust whatever lies are peddled by the regime.
1
rx · 5 months ago
Chirungu chako chakandaka asi zvawanyora hazvina musoro. isu tingada zig sei Ivo vakarigadzira vasiri kurida. SA kwauri kutaura munhu wese Anishandisa rand kutanga Kuna presdent zvichidzika
Anonymous · 5 months ago
The problem in Zimbabwe are the assumptions. You divide balances by 2500 to realign to a gold backed currency, in less than 6 months the gold backed currency is devalued by 43% and you believe we all live on government hand outs like parastatals and other beneficiaries of corruption. How do you expect a pensioner, a villager or a small business to absorb these massive shocks. Those who speak for are beneficiaries of the prevailing corruption and cannot be hard working Zimbos making honest living.
1
@ndozvirevaa · 5 months ago
U don't just wake up and devalue a currency by 44% and expect us to just smile at u what if u do it again. firstly they should have consulted the public and secondly they shouldn't have devalued it by such a large margin a 5 ir 10 percent would have been understandable ohh and dont compare other countries with the zim situation zambians and south africans haven't lost their savings like Zimbabweans hanzi chakatanga ndochakachenjedzaa once it was the zim dollar ,bearer , bond now zig all these losses the ordinary Zimbabwean has suffered so of course the moment history seems like its abt to repeat we will run away . hatingafe sedembaa takasvinura becoz of someone who probably doesn't have a single zig note in their pockets
cde razor wire · 5 months ago
apa zvamwa musombodhiya hakuchina rwendo next month muchanzwa $1 rate yacho yapa 50 zig kkkkkkkkk ko kana takundika ngatingosiyana nazvo. madhara aya aingoda kubira varimi vefodya mari chte. itai isu tirivekuona chte ibai takatarisa takataura motiisa mujeri dzorai USA chte rishande riri rega kwete mapepa ekuputira zvimonera akunyeperwa vanhu nembavha idzi hakuna mari yakadaro taneta nekubirwa isu
...,. · 5 months ago
Politicians should do Politics and leave Economics to Economists. We keep having local currency problems because Politicians are using Economics as a political tool with the advice of a professor.
Anonymous · 5 months ago
I don't agree. The professor they are getting advice from is also a politician now so the tool has rusted and become useless like all the previous caretakers have planned to happen.
Antman · 5 months ago
You can't separate politics and economics they both affect the economy
bury it now before it stinks more ! · 5 months ago
there will soon be a state assisted funeral for the late dead ZiG at heroes acre, zanu and zig sympathizers are advised to bring face masks as the dead ZiG stinks really bad !!!
Anonymous · 5 months ago
You must be joking. The only thing that these realities will create is desperation. Just like in 2015, they released the RTGS. It wasn't being accepted either. As soon as they realised that they had spent all the USD, as is happening now with no money in the interbank market, and people didn't want the RTGS,, like the bond note and bearer checque before it, they forced it on Zimbabwe, making it the only currency. The SONA is going to be a repeat of 2016. They will then ram the ZWG down Zimbabweans' throats and say it is in our best interests. State of insanity, doing things over and over and expecting a different result.
RBZ · 5 months ago
We are considering to abandon the local currency for the meantime.
1
Oliver Duka · 5 months ago
Okay let me do the simple maths for you
On 26 September 2024, Tom had 100 000Zig in his Stanbic Account which at bank rate of 13.9987 was equivalent to usd 7 143.52
On 27 September the following morning, the 100 000 Zig in his Stanbic account according to the new rate of 24.3902 was now usd 4 100.00
In less than 24 hours, Tom had lost a total of usd 3 043.52
Pamberi neZIG
1👀👀 · 5 months ago
pamberi naro,rambai makashinga
Anonymous · 5 months ago
Grade one ✅
Fari · 5 months ago
Eish, zvaari ma1 iwe. Kungomuka munhu wakatoita loss
,,,,,dott · 5 months ago
Bvisai usd musiye zig multi currency inokonzera kuti vanhu vaite appetite nestrong currency
Tango · 5 months ago
Fuel, and other raw materials that are imported will be scarce
1
👀👀 · 5 months ago
ngavatange kubvisa kwavari votanga kushandisa nekutambirisana zig ,rotenga fuel since they own service stations ,rotora mapassport and everyone will embrace it,coz hazviite kuti wobika chikafu chako chakanaka,wochiyemura but woti vamwe idyai ,,hakuna anobvuma kudya chikafu charambwa nemudiki
tavez.com · 5 months ago
izvi zvonetsa
unknown · 5 months ago
The Zig currency is dead. Nobody in their right might would want to be associated with this thing.
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