HARARE – In a bid to stabilize its newly introduced gold-backed currency, the Zimbabwe Gold (ZiG), the government has announced stringent measures against businesses employing inflated exchange rates.
According to a government notice revealed to Reuters, any business found using exchange rates higher than the official rate of 13.5 ZiG per U.S. dollar will face a hefty fine of 200,000 ZiG (equivalent to $14,815).
The notice, issued late on Thursday, categorizes offering goods or services at exchange rates exceeding the prevailing interbank foreign currency selling rate as a civil infringement.
Since the launch of the ZiG in early April, the government has been grappling to maintain its value, resorting to crackdowns on illegal foreign currency traders last month.
However, reports indicate that some businesses, including supermarkets, have been imposing a premium on transactions conducted in the new currency, while informal traders have shown reluctance to accept it.
In a move to reinforce the use of the ZiG as the official unit of exchange, Zimbabwe’s Treasury recently took action. This marks the country’s fourth attempt at establishing a local currency within a decade, following the abandonment of the Zimdollar last month, which had depreciated by 70% since the beginning of the year.
The government’s efforts to curb the use of inflated exchange rates underscore its determination to stabilize the ZiG and restore confidence in the country’s monetary system.
As Zimbabwe navigates through economic challenges, the success of its latest currency initiative remains a focal point for policymakers striving for financial stability.
