Zimbabwe Banking Sector Embraces Digital Currency Transformation

The Reserve Bank of Zimbabwe (Reserve Bank) announces successful progress in converting ZW$ balances to Zimbabwe Gold (ZiG) balances in the banking sector and Payment Systems Providers (PSP). The conversion process continues for other economic sectors until 12 April 2024, with all online payment platforms expected to operate smoothly thereafter. The public has a transitional period of 21 days to convert their ZW$ notes and coins to ZiG, with the conversion factor being 2498.7242 applicable on 8 April 2024. ZiG notes and coins will circulate in the economy from 30 April 2024, following an awareness campaign on their security features.

Zimbabwe's Banking Sector Embraces Digital Currency Transformation

Harare, Zimbabwe - The Reserve Bank of Zimbabwe (Reserve Bank) has lauded the banking sector and Payment Systems Providers (PSPs) for their efficient conversion of Zimbabwean dollar (ZW$) balances into Zimbabwe Gold (ZiG) balances following the implementation of Monetary Policy measures on April 5, 2024.

The conversion process, which is expected to be completed for all economic sectors by April 12, 2024, has paved the way for seamless online payment transactions throughout the economy.

In line with the Monetary Policy Statement and Statutory Instrument 60 of 2024, the public has a 21-day transitional period to convert their ZW$ notes and coins into ZiG. ZW$ notes and coins will continue to be accepted at the ZiG:ZW$ conversion factor of 2498.7242, as applicable on April 8, 2024, within this period.

The Reserve Bank has announced the production of ZiG notes and coins, which will be introduced into circulation from April 30, 2024. This delay will allow the Reserve Bank to conduct an extensive educational campaign on the security features of the new currency.

The campaign aims to reach a wide cross-section of society, aligning with the Reserve Bank's commitment to financial inclusion. The Reserve Bank emphasizes that the ZiG is a "store of value, unit of account, medium of exchange, and standard of deferred payments."

The successful transition to the ZiG has brought about numerous benefits for Zimbabwe's economy. It has enhanced transparency, reduced the risk of counterfeiting, and promoted financial inclusion by enabling seamless electronic transactions.

Moreover, the ZiG's digital nature facilitates a host of innovative financial products and services, such as mobile money and digital wallets. This has the potential to expand access to financial services for the unbanked and underbanked population.

The Reserve Bank's proactive measures to implement digital currency have positioned Zimbabwe at the forefront of the digital financial revolution. The ZiG is expected to play a pivotal role in driving economic growth and development in the years to come.