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Zimbabwe to Impose Fines on Businesses That Don’t Use Official New Currency Rate, Report Reveals

© AP Photo / Tsvangirayi MukwazhiA woman holds the new Zimbabwean banknotes and coins called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024.
A woman holds the new Zimbabwean banknotes and coins called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. - Sputnik Africa, 1920, 11.05.2024
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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.
Zimbabwe's capital Harare - Sputnik Africa, 1920, 07.05.2024
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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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