Zimbabwe announces measures to boost local currency use

HARARE, July 25 (Xinhua) — Zimbabwean Finance Minister Mthuli Ncube on Thursday unveiled further measures to increase the use of the newly-introduced currency Zimbabwe Gold (ZiG) to sustain macroeconomic stability.
Ncube said in his 2024 mid-term budget speech in the parliament that since ZiG’s introduction in April, Zimbabwe’s economy has experienced price and exchange rate stability, hence the need for further measures to increase its usage to buttress economic stability and growth.
“To ensure the stability of the new currency, the private sector, inclusive of manufacturers, retailers, wholesalers, public transporters, informal sector players, and the rest of the economic players, are expected to embrace the new currency for both transactional and savings purposes,” Ncube said.
He said some taxes, including payment for government services, will now be payable exclusively in local currency to strengthen demand and use of the domestic currency.
Zimbabwe has a multi-currency system in place until 2030, and according to the Reserve Bank of Zimbabwe (RBZ), about 80 percent of business transactions in the country are conducted in the U.S. dollar.
The RBZ aims to gradually de-dollarize the economy by boosting ZiG usage and projecting the share of the U.S. dollar in the economy to fall to 70 percent by the end of the year from 80 percent currently.
Ncube added that the legislation would be amended to compel any corporation whose revenue exceeds 50 percent in foreign currency to account for corporate tax on a 50:50 basis. ■