Banks, retailers, telecommunications companies and other firms spent the weekend reconfiguring their systems to adopt ZiG ahead of business resuming Monday.
ZiG, Zimbabwe’s new currency, began trading on Monday as businesses struggled with the nation’s sixth attempt at introducing a revamped unit.
The Zimbabwe Stock Exchange, which has 56 listed companies, said all share prices, price sheets and market reports will now be denominated in the new currency. The new currency will also pose a test for listed firms when they compile their financial statements, according to Lloyd Mlotshwa, the head of research at IH Securities, a Harare-based brokerage firm.
The currency breached several key milestones in one of its worst starts of the year since being brought back into circulation five years ago, plunging 40% on the street market in January. It then went on to lose value every single trading day of the year on the official market, failing to prompt any reaction from authorities to halt the decline.
The Zimbabwe dollar was the world’s second-worst performing currency, trailing the Lebanese pound. ADVERTISEMENT CONTINUE READING BELOW There was “dire need for drastic change” in the Zimbabwean monetary system, according to Oxford Economics. “New leadership at the RBZ will support the message that this time is different,” wrote Jacques Nel, the head of Africa macro at Oxford Economics in a client note. “But a Zimbabwean population all too familiar with false new dawns will take some convincing.
Most parallel market traders rely on using electronic payments done over banking and mobile money platforms to transact. Even those that trade in Zimbabwe dollar banknotes run the risk of holding worthless bills as they will be replaced by ZiG banknotes and coins. The new currency notes will be released April 30, the central bank said.
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