We Have Released Adequate ZiG Notes And Coins, Says Mushayavanhu

Source: We Have Released Adequate ZiG Notes And Coins, Says Mushayavanhu

The Reserve Bank of Zimbabwe (RBZ) says it released enough ZiG cash for use by the public in conducting low-value transactions and for change.

In a statement released on Thursday, 23 May, RBZ Governor John Mushayavanhu said the central bank issued enough ZiG1, ZiG2 and ZiG5 and ZiG10 and ZiG20 notes to meet demand.

Mushayavanhu said the problem is with both companies and individuals who are not approaching their banks to withdraw coins for their transactional convenience. Reads the statement:

This follows an outcry by members of the public about the acute shortage of ZiG notes and coins in circulation which is inconveniencing traders and transport operators, among others.

The Reserve Bank of Zimbabwe (the Bank) wishes to advise the transacting public that ZiG coins in denominations ZiG1, ZiG2 and ZiG5 were issued in quantities sufficient to meet the demand for small denominations used to conduct low-value transactions as well as usage of small denominations for change.

In addition, the Bank has also issued ZiG10 and ZiG20 notes in adequate quantities consistent with the optimal currency issuance ratios.

The Bank has noted, with concern, a breakdown in the cash transmission mechanism as evidenced by the low level of ZiG coin withdrawals from commercial banks and, therefore, encourages both corporates and individuals to approach their banks and withdraw coins for their transactional convenience.

For the convenience of the transacting public, the Bank has, over the years, maintained a constant ratio of currency in circulation in relation to other monetary aggregates such as narrow money and broad money.

The Bank reaffirms its unwavering commitment to ensuring the public’s convenience by providing adequate cash.

It also assures the efficiency, safety, and soundness of the national payments system, which is well-suited to support electronic means of payment.

In line with our efforts to promote a cash-lite economy, we encourage the usage of electronic means of payment, as digital financial services are a key enabler for financial inclusion.

The Reserve Bank will continue to engage commercial banks and leverage their wide branch networks to ensure an efficient and effective supply of currency in the economy.