Despite Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanu’s announcement that the old notes would cease to be legal tender by the end of April, vendors in Harare have ceased accepting bond notes following the introduction of the new currency, Zimbabwe Gold (ZiG dollar).
Mushayavanhu launched Zimbabwe’s new gold-backed currency on Friday in response to the significant devaluation of the bond note, which now trades at ZW$25,000 to US$1 on the more accessible black market.
“I do not know whether bond notes still work. What if I let people use them at my stall and later find out they are now worthless,” expressed Jane Makura, a vendor in the Dzivarasekwa high-density suburb.
“This is another mistake. They should just let us trade in US dollars and leave this culture of changing currencies and removing zeros.”
Tuckshops in areas like Dzivarasekwa, Warren Park, and Highfields have followed suit, no longer accepting the bond notes.
The new ZiG, described by NewzWire as “Mushayavanhu’s clever way of removing zeros from Zimbabwe’s currency,” has been introduced at an exchange rate of US$1 to ZiG$13.
Tatenda Dube shared his confusion over the situation, stating, “I am now confused, I am yet to meet my attendant so that I get to understand how he thinks we should go about it. They should have taken time to inform us about it rather than spring it on us like that.”
Government introduced bond notes in 2016, pegged at par with the US dollar in value. However, market forces and preference for the more stable US dollar led to its devaluation.
The new regime, however, does not eliminate Zimbabwe’s multi-currency system, which recognizes US dollars, pounds, and a variety of foreign currencies as legal tender.
“The introduction of the ZiG currency risks repeating the mistakes of the past. Instead of addressing the root causes of our economic challenges, it offers a temporary fix that fails to inspire confidence among Zimbabweans,” stated ActionAid in a press release.
Despite the reluctance of vendors, most major retail outlets such as supermarkets are still accepting the bond notes.
