We’ve issued enough coins to meet demand for small transactions – RBZ Dr John Mushayavanhu

Sikhulekelani Moyo, [email protected]

THE Reserve Bank of Zimbabwe (RBZ) says it has issued enough quantities of ZiG coins to banks to meet demand for small denominations used to conduct low-value transactions, as well as usage of small denominations for change.

In a statement, RBZ Governor Dr John Mushayavanhu said for the convenience of the transacting public the Apex Bank has maintained a constant ratio of currency in circulation in relation to other monetary aggregates such as narrow money and broad money.

He reaffirms his unwavering commitment to ensuring the public’s convenience by providing adequate cash saying the concerns over low circulations of coins were unjustified as the Bank has issued enough quantities.

“The Reserve Bank of Zimbabwe (the Bank) wishes to advise the transacting public that ZiG coins in denominations ZiG1, ZiG2 and ZiG5 were issued in quantities sufficient to meet demand for small denominations used to conduct low-value transactions, as well as usage of small denominations for change.

“In addition, the Bank has also issued ZiG10 and ZiG20 notes in adequate quantities consistent with the optimal currency issuance ratios,” said Dr Mushayavanhu.

“The bank has noted with concern a breakdown in the cash transmission mechanism as evidenced by the low-level of ZiG coin withdrawals from commercial banks and, therefore, encourages both corporates and individuals to approach their banks and withdraw coins for their transactional convenience.”

He in line with the bank’s efforts to promote a cash-lite economy, they encourage the usage of electronic means of payment, as digital financial services are a key enabler for financial inclusion.

“The Reserve Bank will continue to engage commercial banks and leverage their wide branch networks to ensure an efficient and effective supply of currency in the economy,” said Dr Mushayavanhu.

The ZiG was introduced a month ago to replace the Zimbabwe dollar, which had fallen to about $33 000/US$1 on the interbank market.

The new structured currency is backed by gold and other precious minerals, as well as foreign currency reserves.

-@SikhulekelaniM1

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