Reserve Bank Governor Explains Why He Won’t Force Fuel Stations to Accept ZiG

Reserve Bank Governor Explains Why He Won’t Force Fuel Stations to Accept ZiG

Reserve Bank of Zimbabwe governor Dr John Mushayavanhu has shed light on why he will not compel fuel stations to accept the new currency Zimbabwe Gold (ZiG).

The clarification comes following uproar from the Zimbabwean populace after the central bank disclosed that the newly introduced ZiG currency cannot be used to purchase fuel at service stations.

Also read: Fueling Doubts: Zimbabweans React As RBZ Says New ZiG Currency Cannot Buy Fuel At Service Stations

Building Demand for the ZiG

Addressing members of the Confederation of Zimbabwe Industries (CZI) on Thursday, Dr John Mushayavanhu emphasised that 2030 is the year in which Zimbabwe plans to ditch the multicurrency system.

He explained that the current focus of the central bank is to encourage Zimbabweans to conduct more transactions using the local currency instead of the US dollar. However, he emphasized that this transition should be gradual, rather than an abrupt change.

“We have 31 December 2030 as the date when the multicurrency arrangement comes to an end. We don’t want it to be an overnight event. We want to start building more and more demand for the Zimdollar such that maybe if we can do 70:30 by the end of this year. 70 percent being forex, 30 percent being local. Maybe 60:40 by the end 2025,” Dr Mushayavanhu explained.

Also read: Econet Wireless Unveils ZiG Prices for Voice, Data & SMS, Makes Important Announcement on ZiG Bundles

RBZ Governor Explains Why He Can’t Force Fuel Stations To Accept ZiG

Dr Mushayavanhu further clarified that fuel stations may be only forced to consider accepting ZiG as payment when Zimbabweans start using the local currency for 50 percent of their transactions. He implied that imposing ZiG acceptance on fuel stations prematurely could lead to long queues and other operational challenges.

“When we get to 50:50 people will be indifferent as to which currency they are using and then when we get to 2030 we don’t even have to announce it. People will be using their ZiG and in the process, as we travel along that path that’s when we will say maybe fuel can also be included in that commodity that can be sold in ZiG. We don’t want fuel ques. Things are working so let it be,” he emphasised.

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