RBZ Freezes Bank Accounts Of Companies Refusing To Take The ZiG Currency

The Reserve Bank of Zimbabwe (RBZ) has frozen the accounts of 11 companies that refuse to trade using the new Zimbabwe Gold (ZiG) currency.

The companies were exclusively trading in US dollars. The central bank’s Financial Intelligence Unit (FIU) also blocked the bank accounts for exchange control violations.

Among the fined companies are a major wholesaler in Harare’s central business district, a listed clothing store, and a pharmacy. The RBZ did not disclose their names.

ALSO READ: RBZ Freezes City Of Harare’s Forex Accounts After Council Demands USD Payments For Services

The New Currency Is Here

On 5 April 2024, the new RBZ Governor, Dr John Mushayavanhu, introduced a new currency, the ZiG, to replace the torn Zimbabwe Dollar (ZWL). Banks and organisations configured their systems to the latest currency for seven days. The electronic ZiG is now functional, and the notes will enter circulation on Tuesday, 30 April.

Dr Mushayavanhu recently revealed that the RBZ has finished printing and minting the new notes, backed by gold worth US$285 million.

ALSO READ: Government Cracks Down On Illegal Money Changers For Zig Currency Manipulation

RBZ Freezes Accounts Of Companies Refusing The ZiG

RBZ Freezes Accounts ZiG — *RBZ Freezes Bank Accounts Of Companies Refusing To Take The ZiG Currency*

Most parastatals and organisations announced that they are now transacting in ZiG. However, some companies waywardly dug in and refused to take the new currency.

FIU director-general Oliver Chiperesa informed The Sunday Mail:

“We froze bank accounts belonging to 11 entities, either for exchange rate violations or for trading exclusively in US dollars and refusing to accept ZiG. We have started to take tough measures to send a strong message to those who are bent on undermining the new currency. The special operation is ongoing, and we are rolling it out countrywide and targeting all major trading centres.”

Despite having seven days (5-12 April) to switch from ZWL to ZiG, some companies said they are still reconfiguring their systems. Hence, they can’t take the new currency. However, the RBZ is taking no excuses:

“We think companies have been given sufficient time to migrate to the new currency. So, rather than allow them to trade exclusively in US dollars, we would rather they stop trading altogether until they have configured their systems.”

RBZ Governor Dr Mushayavanhu added his voice to the mischief by the companies:

“ZiG is legal tender, and shops, companies, and businesses should invoice their goods in either ZiG or US dollars because we are operating in a multi-currency system. But where we see companies refusing to accept ZiG, obviously, the FIU is bound to take action. Such action includes freezing accounts, and also some corporates may be fined.”

The post RBZ Freezes Bank Accounts Of Companies Refusing To Take The ZiG Currency appeared first on iHarare News.