Fastjet Airline Now Accepts ZiG

Zimbabwe’s new local currency, ZiG, is gaining widespread acceptance among major companies, including a prominent airline. The Reserve Bank Governor, Dr. John Mushayavanhu, assured Parliament that the Central Bank possesses adequate reserves to back the currency.

The adoption of ZiG as the preferred medium of exchange continues to grow, as more industry players now accept the currency for goods and services. One such company is Fastjet Airline, which announced that customers can now book and pay for flights using ZiG. In a business update, the airline stated that payments in ZiG can be made exclusively at fastjet airport ticketing desks or sales shops.

The Confederation of Zimbabwe Industries (CZI) president, Mr. Kurai Matsheza, expressed his satisfaction with the growing confidence in ZiG across all sectors, emphasizing that it reflects the country’s progress. Mr. Matsheza welcomed the demonstration of confidence and expressed hope that it would extend to all areas of the economy.

“As we observed, some companies are accepting the ZiG, which demonstrates that confidence is building up, so our hope is that over the coming months and year there will be more and more confidence in ZiG.
“We welcome that demonstration of confidence, we hope it will spread to all sectors of the economy.”he said

Similarly, the Confederation of Zimbabwe Retailers (CZR) president, Dr. Denford Mutashu, anticipated a surge in ZiG usage once notes and coins are introduced into circulation. Dr. Mutashu highlighted that 50 percent of all provisional tax payments for companies will be made in ZiG, leading to increased demand for the currency. He also praised ZiG’s sustainability, citing its backing by gold, a precious mineral with an inherent tendency to appreciate in value.

Service providers and supermarket chains throughout Zimbabwe have experienced a boost in business due to the growing confidence in ZiG. The currency’s acceptance by major companies and its potential for stability have contributed to this positive trend.

Addressing a joint sitting of several parliamentary committees, including Budget, Finance, Economic Development and Investment Promotion, and Industry and Commerce, Dr. Mushayavanhu affirmed that the Central Bank possesses sufficient reserves to support ZiG. He disclosed that the Reserve Bank of Zimbabwe holds US$100 million in cash and nostro balances, as well as US$185 million worth of gold. Dr. Mushayavanhu assured the members that the Central Bank would purchase the 25 percent surrender requirement from exporters, with 50 percent of that amount being sold back to the market through banks to ensure sufficient foreign exchange liquidity.

Dr. Mushayavanhu further explained that the value of ZiG would be determined by market forces through the willing buyer-willing seller concept. The Central Bank would only intervene in the currency market if the exchange rate experiences excessive depreciation or appreciation. He also mentioned the establishment of a monetary policy implementation committee to monitor variables such as money supply, inflation, and productivity, ensuring adherence to the announced monetary policy.

The Reserve Bank Governor anticipated an increase in the value of ZiG due to heightened demand when companies make their quarterly tax payments in June, with half of those payments to be conducted using the local currency.

Dr. Mushayavanhu emphasized that the introduction of ZiG was the result of extensive consultations with various stakeholders, including the Confederation of Zimbabwe Industries, the Chamber of Mines, business organizations, civil society, and opinion leaders. He clarified that while the Reserve Bank received assistance from consultants seconded by multilateral organizations, the structured currency was not obtained from the World Bank, as some reports had suggested.