RBZ Governor Unveils Major Changes to ZiG Banknotes and Coins, Announces New Denominations
In a recent development, Dr John Mushayavanhu, the governor of the Reserve Bank of Zimbabwe (RBZ), announced a significant change concerning the Zimbabwe Gold currency bank notes.
Starting from the 31st of this month, both banknotes and coins will be introduced into circulation.
Also read: Reserve Bank Governor Explains Why He Won’t Force Fuel Stations to Accept ZiG
From ZiG Banknotes to Coins: RBZ Governor Unveils Major Changes
On Friday, the central bank governor unveiled major modifications to the Zimbabwe Gold (ZiG) currency. Upon the currency’s initial launch, Dr John Mushayavanhu stated that ZiG 1 to 5 would be issued as banknotes. However, in the latest announcement, the RBZ governor revealed that ZiG 1 to 5 will now be minted as coins. He added that ZiG 10 to 200 will be in the form of bank notes.
“What has changed compared to what I announced on the 5th of April is that ZiG 1 to 5 are now going to be coins and then we have Zig 10, 20, 50, 100 and 200,” Dr Mushayavanhu said.
Also read: ‘The US dollar is doomed’: Americans Praise Zimbabwe for Launching New Gold-Backed Currency ZiG
Practical Considerations and Rationale Behind the Coin Introduction
The central bank governor clarified the rationale behind the decision to introduce ZiG 1 to 5 as coins and not notes. He emphasized that the smaller denominations were chosen taking into account the value of ZiG to the US dollar.
“Why coins? Because 1 ZiG is equal to 6 US cents roughly when you convert using the current exchange rate. So you cannot have a banknote for six cents. The velocity at which it circulates is such that it will get torn and soiled very quickly. This is why we have decided to introduce 1 ZiG to 5 ZiG as coins,” Dr Mushayavahu explained.
Also read: RBZ Freezes Bank Accounts Of Companies Refusing To Take The ZiG Currency
Enhancing Divisibility: RBZ Governor Reveals Plans for Smaller ZiG Coins
In contrast to his earlier statement this month, Governor Mushayavanhu also disclosed further plans to introduce even smaller coins, including a quarter ZiG, half ZiG, and one-tenth of a ZiG, to enhance the divisibility of the currency.
“We are also, in due course, going to introduce smaller coins so that we can achieve divisibility of the currency. So there will be a quarter ZiG coming, a half ZiG and a one-tenth of a ZiG,” the central bank governor disclosed.
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The post ZiG Currency Revamp: RBZ Governor Announces Major Changes to Banknotes and Coins, Unveils New Denominations appeared first on iHarare News.
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