In a strategic move to solidify the status of the Zimbabwe Gold (ZiG) currency, the country's central bank is actively seeking an International Organisation for Standardisation (ISO) code, a senior official revealed yesterday.
Innocent Matshe, the Deputy Governor of the Reserve Bank of Zimbabwe (RBZ), stated that obtaining an ISO code - the unique alphanumeric identifiers assigned to global currencies used in international transactions - is a critical step in establishing ZiG as a standalone legal tender, separate from the current dual currency system.
"According to our economic blueprint, the success of ZiG will hinge on a disciplined management approach, maintaining a tight monetary policy, controlling money supply, and nurturing domestic demand for our homegrown currency," Matshe said, addressing a breakfast meeting hosted by the Zimbabwe Economics Society in the capital.
He emphasized that the process of applying for the ISO code is already underway, underscoring the central bank's commitment to formalizing ZiG as a recognized global currency. "We can confirm that ZiG is indeed a standalone currency, and we expect no deviation from our initial protective policies," Matshe remarked.
Despite past economic turbulence, including currency fluctuations, exchange rate volatility, and high inflation, the Zimbabwean economy has demonstrated resilience and continued growth. However, the central bank acknowledges the need to address these lingering challenges.
"It is essential to have a stable base currency. We cannot sustain a dual currency arrangement indefinitely," Matshe said, emphasizing the importance of digitalizing the economy to alleviate cash shortages and harness the potential of traditional financing and banking systems.
The RBZ deputy governor emphasized that the introduction of ZiG aimed to end economic instability and create a standardized national currency. "Without robust reforms, our economy would not have grown significantly. We need a framework that harnesses the potential of all sectors, including those outside the traditional financial and banking sectors," he added.
Matshe highlighted the central bank's efforts to ensure the adequate supply of small denominations of ZiG to the banking system, addressing the persistent cash shortages. He expressed confidence that these systemic issues will be resolved as the currency becomes more widely available and accepted.
Ultimately, the RBZ's pursuit of the ISO code for ZiG represents a strategic move to elevate the domestic currency's status on the global stage, bolstering confidence and stability in Zimbabwe's financial ecosystem.
