Zimbabwe Announces Measures to Help Spur Demand for ZiG Currency
Zimbabwean Finance Minister Mthuli Ncube announced measures to help spur demand for the nation’s bullion-backed currency, with government departments set to accept payment for goods and services in the local currency.
Presenting the mid-term budget statement before lawmakers Thursday in Mount Hampden, 11 miles northeast of the capital, Harare, Ncube vowed to support the so-called ZiG — short for Zimbabwe Gold — which he also praised for helping curb inflation.
Some of the measures set to be rolled out include government departments allowing payment in local currency as a way to help “strengthen demand” for it, according to Ncube. “Some taxes will be payable exclusively in local currency,” he said, while there are also plans to increase circulation of ZiG notes without raising the stock of money supply.
The southern African nation announced the budget in its new ZiG currency, which was launched in early April. Its predecessor, the Zimbabwean dollar, was abandoned after losing 80% of its value against the dollar this year, stoking an inflation spiral.
