Zimbabwe will allow mobile money agents, once blamed for the collapse of the defunct Zimbabwean dollar, to operate again to boost use of the new gold-backed currency.
Details
Econet Wireless Zimbabwe Ltd., founded by a tycoon Try Masiyiwastate NetOne and of Telecel Agents will be allowed to start operating in the coming weeks to increase the use of ZiG and curb the informal market, according to a proposal by Zimbabwe’s Ministry of Finance.
Between the lines
Launched on April 5, ZiG, short for Zimbabwe Gold, is the country’s sixth attempt at a stable local currency in the past 15 years.
It replaced the Zimbabwean dollar, whose value was plummeted 80% against the US dollar this year.
Zoom out
Mobile money agents were banned from operating in July 2020 after those working for Ecocash of Econet, the largest mobile operator, were accused of charging premiums on transactions.
What they say
Agents will act as currency exchangers and help the public to access small amounts of foreign currency for daily use, Kunda Mnangagwasaid the deputy finance minister.
“This means that if you have an Econet line and if you subscribe to Ecocash, you can convert from ZiG to USD or from USD to ZiG at the official exchange ratehe told MPs in parliament last week.
“This is the first place that allows switching without having to go out on the streets.”
Because this matters
The move adds to Zimbabwe’s moves to stamp out rural traders, whom it blames for contributing to its previous currency crisis.
Source: Bloomberg
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