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A former Chitungwiza Municipality employee was stunned when he was informed that the US$5,156.95 owed to him after his contract was terminated in August 2015 has now been reduced to a mere ZiG2.06 due to currency conversion over the years.
In a letter dated November 5, 2024, from Chitungwiza Municipality’s finance director, Evangelista Machona, the former employee was advised that the transition from USD to RTGS (Real-Time Gross Settlement) and now to the gold-backed Zimbabwe Gold (ZiG) currency has devalued the amount owed.
The letter, which was leaked to the press, says that the original US$5,156.95 is now worth ZiG2.06 after a series of currency shifts.
Responding to the former employee’s letter dated October 15, 2024, Machona outlined the timeline of currency conversions.
She explained that in February 2019, Zimbabwe transitioned from the US dollar to RTGS at a rate of 1:1, meaning the US$5,156.95 became RTGS5,156.95.
Then, on April 5, 2024, the RTGS amount was converted to ZiG at a rate of 1:2498.7242, resulting in the final amount of ZiG2.06. The letter reads in part:
<blockquote>
You were owed US$5 156.95 when your contract with Council was terminated in August 2015.
Please be advised that in February 2019 there was a transition from USD to RTGS at a rate of 1:1 which meant that US$5156.95 became RTGS 5156.95.
The RTGS 5156.95 was then converted to ZIG on 5 April 2024 at a rate of 1:2498.7242 and it became 2.06 ZIG.
Council now owes you ZIG 2.06.
</blockquote>
Millions of Zimbabweans have seen their hard-earned savings wiped out over the years due to frequent and dramatic currency changes.
This erosion of value has led to a deepening mistrust in local currencies, pushing many Zimbabweans to prefer using foreign currencies like the US dollar for everyday transactions.
The recent introduction of the ZiG currency in 2024 was hoped to restore confidence, but it is still struggling to gain traction with the public.
Despite being pegged to gold reserves, the ZiG has yet to inspire the same level of trust as foreign currencies, leaving many sceptical about its stability and long-term viability.
As a result, Zimbabweans continue to rely heavily on the US dollar, reflecting a broader lack of faith in the country’s monetary system.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

A man used to work for Chitungwiza Municipality and was owed $5,156.95 in US dollars after his job ended in 2015. However, due to currency changes over the years, this amount was reduced to just ZiG2.06, which is not a lot of money. Many people in Zimbabwe have also lost money because of currency changes, making it hard for people to trust their own money. Even though they have a new currency called ZiG backed by gold, people are still unsure about its worth and are more comfortable using US dollars for their purchases.

Chitungwiza Ex-Employee's US$5,000 Salary Arrears Reduced To Just ZiG2.06 After Currency Conversion