By Kwedu News
Harare, Zimbabwe – The Reserve Bank of Zimbabwe (RBZ) has announced that the World Bank has certified the Zimbabwe Gold (ZiG) currency code, ZWG, giving the currency a unique identity among international currencies.
The minor units of the ZiG will be denominated as “cents”.
The ZiG, introduced in April 2024, replaced the Zimbabwe dollar, which had been plagued by volatility and inflation.
The new currency is backed by precious metals, mainly gold, and foreign currency with a cumulative value of approximately US$300 million.
“The Reserve Bank of Zimbabwe advises that the World Bank ISO 4217 Committee has approved our request to change the Zimbabwe Currency Code from ZWL to ZWG (Zimbabwe Gold) effective 25 June 2024,” Dr. Josephat Mutepfa, RBZ Director Financial Markets said.
“It should also be noted that the minor units of the Zimbabwe Gold shall be denominated as ‘cents’,” Dr. Mutepfa added.
The certification of the ZWG facilitates international financial transactions, trade, and investment.
A currency code is essential for quoting prices, invoicing, and settling payments in international trade, and ensures standardization, accuracy, and efficiency in financial transactions.
“This is a normal process, it is just telling you that now the ZIG currency is recognized as ZWG, all along the Zimbabwean currency was denoted by ZWL,” Fanwell Mutogo, Bankers Association of Zimbabwe CEO said.
“A currency code provides a unique identifier for each currency, which is crucial for distinguishing between currencies that may have similar names and it also facilitates accurate and clear communication in financial transactions,” another banker, Raymond Madziva said.
The RBZ has announced that the ZWL currency code will continue to be used until the end of August 2024, to allow for necessary system configurations by players.
The ZWL currency code will cease to be recognized from September 1, 2024, and all banking sector players must make necessary arrangements to facilitate a smooth transition to the new currency code, ZWG.
The introduction of the ZiG and the certification of the ZWG currency code are seen as positive developments for Zimbabwe’s economy, which has been struggling with inflation and currency volatility.
The stability of the ZiG, which has been trading at around ZiG13.60 to the US dollar, is a welcome respite for the country.
