Zimbabwe has imposed fines for not doing transactions at the official exchange rate of the ZiG, which stands for Zimbabwe Gold.
A monthlong-drive by Zimbabwean authorities to stifle the unofficial market in their new gold-backed currency is driving the business off the streets and into the bank. The unit was introduced in April and is the southern African nation’s sixth attempt in 15 years to stand up a stable local currency. “The parallel market is not as loud and visible as it was before the latest blitz,” said Lawrence Nyazema, president of the Banker’s Association of Zimbabwe.
Street dealers across the country have been forced to abandon their regular city-center spots and have switched to using mobile phone messenger platforms to avoid detection. Zimbabwe’s crackdown mirrors measures by other governments in the region where local currency depreciation has fanned inflation, stoking a cost of living crisis that’s spilled into public unrest. The local currency was trading at 13.31 per dollar on Tuesday, up 1.9% from its launch price of 13.56. The ZiG is backed by 2.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IMF calls Zimbabwe switch to gold-backed ZiG an ‘important’ stepZiG, short for Zimbabwe Gold, was unveiled on April 5.
Read more »
Zimbabwe: Newly Launched ZiG Currency to Breathe Life Into Ailing EconomyMinister of Finance, Mthuli Ncube says the country's economy is expected to rebound as a result of the newly launched gold backed currency, Zimbabwe Gold (ZiG).
Read more »
Zimbabwe: Motorists Now Able to Buy Petrol, Diesel Using New ZiG CurrencyIN a major climbdown, Zimbabwean authorities, initially jittery to force petroleum dealers to accept the new ZiG currency, have announced motorists can now buy petrol and diesel using the money.
Read more »
Zimbabwe’s ZiG weakens to lowest level since launchExperiencing a 0.8% decline from its first trading day.
Read more »
Zimbabwe: Parliament Concerned Over Continued Rejection of New ZiG CurrencyPARLIAMENT has expressed concern over the continued rejection of the newly launched Zimbabwe Gold (ZiG) currency by some traders.
Read more »
Zimbabwe to fine those not using official ZiG rateZimbabwe to fine those not using official ZiG rate
Read more »