Shortage of small ZiG notes, coins trigger chaos

Small and medium enterprises in Zimbabwe are facing a shortage of small ZiG denominations, with vendors urging the Reserve Bank of Zimbabwe to release more coins for change and easy transactions.

Despite the golden principle of money supply dictating that it must be scarce, vegetable vendors and other small businesses are calling for more small denominations, especially coins, to facilitate their operations.

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The absence of small denominations has forced vendors to offer customers products they don’t want to complete a transaction.

“We are hearing about it, but it’s not available here at vending sites. We are eagerly waiting for it because it helps us for change to our customers, said a vendors at easily shopping centre,” said a vendor.

“Because of lack of small denominations, we end up forcing our customers to take things which they don’t like for the sake of transacting, so if more ZiG is circulated it will make our business easier,” noted another.

Meanwhile, those who have used the new ZiG currency are satisfied with its bargaining power.

“The ZiG has come as a relief commuting public. We can now get change unlike in before when the Kombis were manipulating us as they could not give us change,” said a car wash vendor in Harare.

The Reserve Bank of Zimbabwe introduced the new currency on April 5th, which is backed by a combination of gold, other precious minerals, and foreign currency reserves.

The RBZ has also reserved over US$100 million in foreign currency, including 2.5 tonnes of gold worth US$185 million.

As the central bank continues to release more ZiG currency into circulation, vendors hope that the majority of it will come in small denominations to facilitate transactions.