Chaos Grips Zimbabwe as Banks Halt Transactions Amid ZiG Launch

Reports have surfaced of widespread frustration among Zimbabweans unable to access their local dollar funds from banks, following announcements

Reports have surfaced of widespread frustration among Zimbabweans unable to access their local dollar funds from banks, following announcements of temporary halts on transactions to facilitate machine repairs.

In the wake of the Reserve Bank of Zimbabwe's introduction of the new ZiG currency last Friday, various financial institutions, including banks, supermarkets, and mobile service providers like Econet and Net-One, have reportedly ceased transactions involving the country's currency. They cite the need for machine upgrades to accommodate the new currency.

During the launch of ZiG, the newly appointed central bank governor, Mr John Mushayavanhu, unveiled plans for a transition period, stating that from Monday, the public could exchange their Zimbabwean dollars for ZiG, with all local currency holdings in banks to be converted. [post_ads]

However, legal experts have raised concerns, alleging government violation of financial laws outlined in the constitution. They argue that the launch of the new currency under a temporary law, known as a Statutory Instrument, may not comply with constitutional standards.

Amidst uncertainty, public confidence in the new currency remains tentative, with citizens awaiting its acceptance in government services such as passport collection as a gauge of legitimacy.

In response, economists aligned with the opposition party Coalition for Democrats, notably Mr Trust Chikohora, view the banking hiatus positively, seeing it as an opportunity for institutions to modernize equipment ahead of Monday's anticipated currency shift.

However, Mr. Chikohora stresses the need for government and central bank efforts to bolster public trust in the new currency through effective implementation. [post_ads_2]

Regarding the alleged legal irregularities surrounding the currency launch, Mr. Chikohora downplays concerns, expressing confidence in the government's ability to address the issue.

Meanwhile, former leader of the Citizens' Coalition for Change, Mr. Nelson Chamisa, took to social media platform X (formerly Twitter) to advocate for political reform over financial change. Emphasising the importance of independent monetary systems, Mr Chamisa called for public-backed political discussions and a new government to address Zimbabwe's challenges effectively.