Hopewell Chin’ono an award-winning Zimbabwean journalist and filmmaker who has worked with the BBC, ITV News, and the New York Times. Chin’ono reveals a positive development on the recent introduction of ZIG.
On a recent post seen by Newsreportzim.com it has learnt that Fastjet airline is now accepting the new currency
On his X post he stated that….,Zimbabwe’s Fastjet airline is now accepting payments in ZiG.
This is a positive development that could benefit the local currency if adopted widely by the whole economy.
However, it may not be sufficient if the government continues to refuse the ZiG for essential payments such as passport fees, customs duty, fuel, and number plates.
For ZiG to achieve stability and inspire confidence, it must be accepted for all transactions within Zimbabwe.
The government’s reluctance to accept ZiG for crucial payments will impede its widespread adoption and stability and result in it being worthless soon.
While Fastjet’s decision is commendable, it’s unlikely that other airlines will follow suit.
Their hesitation stems from a lack of trust in the central bank’s ability to exchange the ZiG for US Dollars when repatriating profits.
This lack of confidence in the currency exchange mechanism will discourage other businesses from adopting the ZiG for transactions.
Most of the businesses allowed to exclusively charge in US Dollars, like ZUVA, are owned by ZANUPF political elites.
The government, run by ZANUPF, refuses to accept its own currency.
Until this changes, ZiG will not gain traction.
That’s why it has depreciated on the black market, despite the government arresting 65 illegal money changers. Economic laws aren’t determined by fear, force, or jackboot tactics; they are determined by real economic fundamentals.
Let us hope the Zimbabwean government realises this self-evident truth and makes its currency acceptable for all transactions within the country. Otherwise, it is a futile endeavor.
Until then, my advice to Zimbabweans is to keep their money in US Dollars if they want to avoid waking up to worthless currency.
My prediction is that Fastjet will revert to not accepting ZiG unless it becomes universally acceptable.
An economy is run through economics not propaganda, the ZiG must be acceptable for transactions that involve everyday people like fuel.
Online views comments;
African
Buy tickets until December Madzibaba HC. You will thank me later.
Liberty Nyathi
Mukoma Hope, I thought you understood economics. There is a cover(reserves) of 285M and ZiG in circulation of about 80M, that will not be able to cover everything(transactions) including fuel, unless you want the
@ReserveBankZIM
to print more money outside the cover(reserves).
Lannie10k
Waneta kuramba uchingotukwa zve
Baba Zerah
What rate are they accepting is another critical question
Source Newsreportzim.com
