Recent devaluation of the Zimbabwe Gold (ZiG) currency by 40% has led to widespread rejection by merchants, public transport operators, and various institutions. This devaluation marks the sixth attempt at a currency since 2009, causing anxiety among stakeholders.
Many suppliers have been hesitant to accept ZiG even before the devaluation, with a farmer in Bulawayo expressing concerns about the worsening situation. The currency’s value against the greenback dropped from 24.39 on Friday to 24.88 on Monday.
The devaluation is expected to exacerbate inflation, which rose to 1.4% in August. While the government believes that the devaluation will help ease inflation, the Consumer Council of Zimbabwe (CCZ) reports that some traders are now rejecting ZiG from customers.
Notably, cab drivers and civil servants are also feeling the impact of the devaluation. Cab drivers are refusing ZiG due to the inability to purchase fuel with the currency, while civil servants like teachers are concerned about the devaluation affecting their salaries.
The Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) is calling for salary adjustments to reflect the devaluation, emphasizing the need for immediate action from the government.
Zimbabweans, who have experienced currency devaluations in the past, are wary of the ZiG’s stability. It is crucial for the government and the central bank to restore confidence in the currency amid these economic challenges.