Zimbabwe Cracks Down on Businesses not Using Official Exchange Rate for New ZIG Currency

Confidence UbaniMay 11, 20241 Mins read673

The Zimbabwean government is cracking down on businesses that has refused to use the official exchange rate for its new currency, Zimbabwe Gold (ZiG).

In a bid to curb inflationary pressures and ensure adherence to official exchange rates, authorities have announced stringent measures against businesses found using inflated rates.

According to a notice issued by the government, any business or corporate entity found utilizing exchange rates higher than the official rate of 13.5 ZiG per U.S. dollar will face penalties. This move aligns with the government’s commitment to enforcing confidence in the ZiG.

Efforts to safeguard the ZiG’s value have intensified since its launch in early April, with recent crackdowns targeting illegal foreign currency traders. Despite these efforts, challenges persist, particularly with some supermarkets charging premiums for transactions conducted in ZiG.

Zimbabwe’s treasury mandated the use of ZiG as the official unit of exchange, marking the country’s fourth attempt at establishing a local currency within a decade. The decision follows the abandonment of the Zimdollar last month, which had suffered a significant depreciation in value.

While reports suggest fluctuations in the ZiG’s value on the black market, officials remain optimistic about its long-term prospects. Radio broadcasts and public campaigns are also promoting the adoption of ZiG.

Read: Canada Fines Binance Over $4 Million for Breaching Money Laundering Laws