Zimbabwe is taking a firm stance on the use of its new ZiG currency, announcing penalties for individuals and companies that do not adhere to the official foreign-exchange rate.
Finance Minister Mthuli Ncube revealed that offenders will face fines of 200,000 ZiG (equivalent to $14,782) according to a statement released on Thursday.
This move comes after warnings earlier in the week about forthcoming regulations aimed at enforcing the exclusive use of the official exchange rate, which is set daily by the Reserve Bank of Zimbabwe.
The government’s intention is to combat the parallel market by establishing the official ZiG exchange rate as the sole reference for currency transactions.
Additionally, the new regulation eliminates the previous requirement for retailers to price their goods within 10% of the official exchange rate, a measure aimed at making them more competitive against informal traders.
The introduction of ZiG, which replaced the depreciating Zimbabwean dollar on April 5, marks the country’s sixth attempt to establish a stable local currency. ZiG is backed by 2.5 tons of gold and approximately $100 million in foreign currency reserves held by the central bank.
Banknotes and coins for ZiG were released to the public at the end of last month. Despite its launch, the currency has faced challenges, with its value fluctuating.
As of Thursday, ZiG was trading at 13.53 to the dollar, experiencing a record low on Monday at 13.67 to the dollar since its introduction a month ago.
