https://en.sputniknews.africa/20240511/zimbabwe-to-impose-fines-on-businesses-that-dont-use-official-new-currency-rate-report-reveals-1066486049.html
Zimbabwe to Impose Fines on Businesses That Don’t Use Official New Currency Rate, Report Reveals
Zimbabwe to Impose Fines on Businesses That Don’t Use Official New Currency Rate, Report Reveals
Sputnik Africa
The new currency, called Zimbabwe Gold (or ZiG for short), was launched in Zimbabwe at the beginning of April. It is fully backed by precious metals (mostly... 11.05.2024, Sputnik Africa
2024-05-11T14:00+0200
2024-05-11T14:00+0200
2024-05-11T14:22+0200
sub-saharan africa
zimbabwe
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Zimbabwe will impose fines on enterprises that use inflated exchange rates since it has implemented the Zimbabwe Gold (ZiG), the Western media reported on Friday, citing a government notice.Now, any business that uses an exchange rate above the official rate of 13.5 ZiG per US dollar will be reportedly subject to a penalty of 200,000 ZiG ($14,815).Furthermore, selling "goods or services at an exchange rate above the prevailing interbank foreign currency selling rate" would be a civil infringement, the media reported, quoting the note.The government has supported the ZiG since its launch, with officials commencing a crackdown on illicit foreign currency dealers last month. Some businesses, such as supermarkets, have reportedly charged a premium over the market rate for clients who pay with the new currency, while informal traders have refused the ZiG. On Tuesday, Zimbabwe's authorities announced plans to convert its annual budget to the ZiG.The introduction of the ZiG marked Zimbabwe's sixth attempt since 2008 to establish a stable domestic currency. The Zimbabwean dollar's significant depreciation against the US dollar this year, losing approximately 80% of its value, made budgeting increasingly difficult.The ZiG, backed by gold reserves, offers a potential solution to the currency instability that has plagued the nation. The country's Vice President Constantino Chiwenga said in late April that the introduction of the new currency is a progressive move towards eliminating the reliance on US dollar in Zimbabwean economy.He also stated that linking ZiG to gold reduces the risk of volatility and manipulation, and authorities expect this will bring stability to foreign exchange markets.
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zimbabwe, economy, southern africa, currency, us dollar
zimbabwe, economy, southern africa, currency, us dollar
Zimbabwe to Impose Fines on Businesses That Don’t Use Official New Currency Rate, Report Reveals
14:00 11.05.2024 (Updated: 14:22 11.05.2024) Christina Glazkova
Writer / Editor
The new currency, called Zimbabwe Gold (or ZiG for short), was launched in Zimbabwe at the beginning of April. It is fully backed by precious metals (mostly gold) and foreign currencies.
Zimbabwe will impose fines on enterprises that use inflated exchange rates since it has implemented the
Zimbabwe Gold (ZiG), the Western media reported on Friday, citing a government notice.
Now, any business that uses an exchange rate above the official rate of 13.5 ZiG per US dollar will be reportedly subject to a penalty of 200,000 ZiG ($14,815).
Furthermore, selling "goods or services at an exchange rate above the prevailing interbank foreign currency selling rate" would be a
civil infringement, the media reported, quoting the note.
The government has supported the ZiG since its launch, with officials commencing a crackdown on illicit foreign currency dealers last month.
Some businesses, such as supermarkets, have reportedly charged a premium over the market rate for clients who pay with the new currency, while informal traders have refused the ZiG.
On Tuesday, Zimbabwe's authorities announced plans to
convert its annual budget to the ZiG.
The
introduction of the ZiG marked Zimbabwe's sixth attempt since 2008 to establish a stable domestic currency. The Zimbabwean dollar's significant depreciation against the US dollar this year, losing approximately 80% of its value, made budgeting increasingly difficult.
The ZiG, backed by gold reserves, offers a potential solution to the currency instability that has plagued the nation. The country's Vice President Constantino Chiwenga said in late April that the introduction of the new currency is a progressive move towards eliminating the reliance on US dollar in Zimbabwean economy.
He also
stated that linking ZiG to gold reduces the risk of volatility and manipulation, and authorities expect this will bring stability to foreign exchange markets.
