Zimbabweans’ Reaction to RBZ’s Announcement on ZiG and Fuel Purchases
Zimbabweans have expressed shock and disappointment at the Reserve Bank of Zimbabwe’s (RBZ) announcement that the newly introduced ZiG currency cannot be used to purchase fuel at service stations.
The RBZ stated that it is not mandatory for fuel stations to accept ZiG. According to a Frequently Asked Questions (FAQ) document from the Reserve Bank of Zimbabwe, fuel stations are only encouraged to accept ZiG.
The FAQ states,
“The current pricing mechanism in the fuel sector will remain in place until otherwise reviewed. As the Reserve Bank and Government work towards wider use of ZiG, the fuel sector will be encouraged to accept ZiG for fuel purchases.”
Many Zimbabweans were unimpressed with the announcement and argued that the decision spells doom for the stability of the gold-backed ZiG currency in the long run.
Some also expressed concern that the decision showed that the RBZ and the government did not have full confidence in the new currency.
They argued that the only way the new currency would become stable and inspire confidence in the general populace is if it were accepted in all sectors without reservation.
Some cheeky Zimbabweans also made fun of the situation, saying it does not make sense for gold to be unable to buy fuel.
Below are some reactions from Zimbabweans on social media to the news that the newly introduced gold-backed ZiG currency cannot buy fuel at service stations:
Economist Prof Gift Mugano said:
“Our esteemed Governor underestimates the power of the black market. The decision by the Government of Zimbabwe to allow exclusive use of USD at the fuel stations is the biggest mistake. The black market can’t be killed by ZiG. Rather, ZiG will be killed by money changers. Mark this post!”
Former Cabinet Minister Walter Mzembi added:
“ZiG exemptions for some sectors are an indictment. It’s a cousin currency of the Bond, RTGS as long as it can’t buy fuel. Secondly, the decision to exempt the fuel sector reeks of conflict of interest, where the elite want to save their businesses from collapse but are prepared, out of their own decisions, to see everything else in commerce collapse. Why did you launch this currency then if you didn’t have your act together?”
Zanu PF Activist and Stalwart Kudzai Mtisi also bemoaned the situation:
“According to the @ReserveBankZIM, the current fuel pricing system will remain in place… ‘the fuel sector will be encouraged to accept ZiG for fuel purchases’ … Well, they aren’t serious about introducing a new currency… Fuel alone generates the highest demand for forex… a major contribution to the forex black market… Ordinary people can’t just walk into a bank to buy forex for fuel, but fuel companies should be able to do so… As long as RBZ isn’t willing to normalize fuel pricing, they shouldn’t expect any difference…. A very dumb way of introducing a new currency.”
Former Legislator Fadzayi Mahere added:
“Until the ZiG can buy fuel, pay passport fees and be convertible outside the country, very few Zimbabweans, banks, and businesses will have confidence in it. And to be clear – the very same reason why fuel companies won’t accept it is the same reason citizens have very little, if any, faith in it. “
More Reactions from Ordinary Zimbabweans Online:
Skilled Rebhara @drjaytee87:
“I don’t understand economics, it’s not my field, but if people are paid in ZiG, most get services in ZiG then fuel is in USD, rest assured that the black market will stay.”
The Prince of Dotito @tsedudzayi:
“Then it’s another phantom money whose purported value is valueless when faced with fuels. Clearly, the plotters of the so-called ZiG know it’s just a Bond Note which went to Falcon College!”
Victor @payera_victor:
“Gold can’t buy fuel? What a shock.”
Onson @OnsonMash:
“It cannot be money if its purchasing power is product selective. This is the government accepting that they have just introduced a useless currency.”
The RBZ’s announcement regarding the limitations of the newly introduced ZiG currency in purchasing fuel has sparked widespread concern and skepticism among Zimbabweans. The decision not only undermines confidence in the currency but also raises questions about the government’s strategy for economic stability. As the nation grapples with this new development, one can’t help but wonder: Will the ZiG currency be able to regain the trust of the people and prove its worth in the long run?
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The post Fueling Doubts: Zimbabweans React As RBZ Says New ZiG Currency Cannot Buy Fuel At Service Stations appeared first on iHarare News.
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