RBZ Reveals if New Currency ZiG Can Buy Fuel in Zimbabwe and Make International Payments

RBZ Reveals if ZiG Can Be Used to Buy Fuel and Make International Payments

The Reserve Bank of Zimbabwe (RBZ) has come forward to address questions surrounding the recently unveiled Zimbabwe Gold (ZiG) currency.

Also read: Faith in Currency: Prophet Emmanuel Makandiwa Urges Zimbabweans to Embrace ZiG Currency for Economic Transformation

Zimbabwe Introduces New Currency

Last Friday, the Reserve Bank of Zimbabwe introduced a fresh “structured currency” backed by gold and foreign currency. The primary objective is to tackle Zimbabwe’s surging inflation and stabilize its struggling economy, which has faced numerous hurdles.

Also reveal: ZINARA Announces New Toll Fees and Vehicle Licensing Prices in Zimbabwe Gold (ZiG) Currency

RBZ Reveals if ZiG Can Be Used to Buy Fuel in Zimbabwe

Now, the Reserve Bank has clarified whether Zimbabweans can use the new currency to buy fuel.

In a document addressing some of the questions surrounding the new currency, the central bank stated that Zimbabweans won’t be immediately able to buy diesel and petrol using ZiG. It emphasized that the current fuel pricing in USD will remain until reviewed otherwise. Additionally, it expressed intentions to collaborate with the government to encourage the fuel sector to embrace ZiG.

“The current pricing mechanism in the fuel sector will remain in place until otherwise reviewed. As Reserve Bank and Government work towards wider use of ZiG, the fuel sector will be encouraged to accept ZiG for fuel purchases,” the Reserve Bank explained.

Also read: ZESA Temporarily Suspends Electricity Token Sales in Local Currency Amid ZiG Currency Transition

International Transactions: Can ZiG Be Used Outside Zimbabwe?

Americans Praise ZiG — Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu holding ZiG specimen notes (Image: Information Ministry Zimbabwe)

The central bank also revealed whether the new currency will be internationally recognised unlike its predecessor and if Zimbabweans will be able to make international payments using ZiG.

The Reserve Bank said ZiG is not yet recognised internationally and cannot be used to make international payments as it has not yet achieved convertibility. It acknowledged that the currency is still in its infancy and outlined plans to strengthen the new currency to achieve full convertibility.

“ZiG is a local currency that has just been launched and has not yet achieved convertibility. The Bank will work to strengthen the currency to attain full convertibility, consistent with the regional agenda for macroeconomic convergence under the SADC Protocol on Finance and Investment” the RBZ explained.

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