Rédaction Africa Links 24 with Zimeye
Published on 2024-04-10 02:00:00
Banks and payment service providers in Zimbabwe are facing challenges in converting clients’ Zimbabwe dollar bank balances into the new ZiG currency. Despite the announcement by Reserve Bank of Zimbabwe Governor Dr. John Mushayavanhu that this conversion would be completed by the end of the day on Monday, progress has been slow.
A survey conducted in Harare revealed that most online payment platforms for ZiG transactions are still suspended. As a result, supermarkets are only processing USD transactions as banks have not aligned their systems to the new currency regime. This lack of readiness from financial institutions is hindering the smooth transition to the ZiG currency.
The President of the Bankers Association of Zimbabwe, Mr. Fanwell Mutogo, refrained from giving a clear position on the progress made by banks in converting Zimbabwe dollar balances to ZiG. However, some banks like NMB have successfully converted their clients’ balances, signaling some progress in the transition. Additionally, mobile money operator Ecocash is now displaying ZiG currency functions on its menu, indicating readiness for the new currency.
The Confederation of Zimbabwe Retailers has acknowledged the introduction of the new ZiG currency but expressed concern over the low business activity due to technical challenges with mobile platforms and incomplete transition by banks. The conversion rate for Zimbabwe dollar bank balances to ZiG currency is set at 1:2498.72.
The Reserve Bank of Zimbabwe has announced that new ZiG notes and coins will start circulating at the end of the month. Until then, transactions in ZiG will be restricted to online and mobile platforms. This phased introduction of physical cash aims to ensure a smooth transition to the new currency regime.
Overall, the conversion process to the ZiG currency is facing challenges due to the slow alignment of banking systems and technical issues with online platforms. However, some progress has been made by individual banks and mobile operators in preparing for the new currency. As Zimbabwe prepares for the full circulation of ZiG currency, it is crucial for all stakeholders to work together to address these challenges and ensure a smooth transition for businesses and consumers.
Read the original article on The Zimbabwe Eye
