Harare, Zimbabwe – Arnold Mutiri, a carpenter from Glenview, a bustling working-class suburb in Zimbabwe’s capital, Harare, stopped by a shopping centre to purchase a 2-litre Mazoe Raspberry drink. The price listed was US$3.70, reflecting the country’s volatile currency situation.
With Zimbabwe’s economic crisis and fluctuating currency, most goods are priced in US dollars to ensure stability, with customers receiving change in local currency. However, when Mutiri tried to pay for his drink with four US$1 bills, the shop had no change. The 37-year-old attempted to use Zimbabwe’s outgoing currency, bond notes, but was refused, forcing him to either buy more items or forfeit the balance.
This scenario is becoming commonplace for many Zimbabweans since the launch of the new currency, Zimbabwe Gold (ZiG), two weeks ago. Mutiri expressed frustration at the increased budgetary strain on basic necessities.
Although digital platforms and local banks have transitioned to ZiG, physical banknotes will only be available by the end of the month, leading to a temporary reliance on bond notes. Businesses like the one in Glenview have already stopped accepting bond notes, impacting those who rely on cash for daily transactions.
The introduction of ZiG aims to stabilize inflation and bring predictability to Zimbabwe’s financial system. However, consumers are facing challenges and confusion. Concerns loom over the lack of consultation, especially in rural areas like Murewa, where elderly residents like Agnes Kwaramba worry about the currency swap’s implications.
Despite assurances from the Reserve Bank, some economists and citizens remain skeptical about the timing and implementation of the new currency. The history of currency instability in Zimbabwe has eroded public trust, making confidence in ZiG a critical challenge.
As Zimbabweans navigate the transition to ZiG, the use of US dollars remains prevalent, highlighting the need for the government to instill confidence in the new currency through effective policies and education campaigns. The future success of ZiG hinges on addressing fundamental issues within the financial sector and rebuilding public trust in Zimbabwe’s currency system.