A Tale Of Neglect & Innovation, Pressure Mount, Government Review ZWG-USD Exchange Rate

By Shingirai Vambe

Drama unfolds, having received a payment or submitted an invoice hours before revaluation announcement, reason why citizens lack trust in the country’s local banking and financial systems as one may experience loses and, in this case, Zimbabweans have already lost 44% of their money just in hours.

In a desperate bid to stabilize the country’s plummeting economy, the Reserve Bank of Zimbabwe (RBZ) has announced a shocking 67% devaluation of the Zimbabwean Gold (ZiG) currency, from ZWG $14.9 to ZWG $25.

The drastic measure comes after major retailers, TM Pick n Pay and OK, threatened to shut down operations due to unsustainable losses caused by the volatile exchange rate.

“We can’t continue operating under these conditions,” said a spokesperson for TM Pick n Pay. “The constant fluctuations are making it impossible for us to maintain stable pricing.”

The move is a stark admission of the RBZ’s struggles to contain Zimbabwe’s runaway inflation, now estimated at a staggering 880% by US-based economist Steve Hanke.

“The situation is catastrophic,” Hanke warned. “The Zimbabwean people have lost faith in the ZiG, and the government’s policies are exacerbating the crisis.”

Despite relaxed punitive measures against illegal traders, Zimbabwe’s economy continues to spiral out of control. Prices of goods and services have skyrocketed in both US dollars and Zimbabwean currency, leaving citizens reeling.

“The government must act decisively to address the root causes of this crisis,” urged Hanke. “Anything less will condemn Zimbabwe to further economic chaos.”

As the RBZ scrambles to stem the currency collapse, Zimbabweans are bracing for further economic shock.

The once-thriving banking industry in Zimbabwe has become a shadow of its former self. Banks, now driven by survival and profiteering, have lost sight of their core purpose: serving communities and managing individuals’ finances.

A scuffle between banks and citizens has ensued, high bank charges fueled by the lack of innovation and crippling economic conditions. The Reserve Bank of Zimbabwe (RBZ), instead of regulating, has joined forces with banks, prioritizing their interests over citizens’ needs.

“The central bank and ministry of finance are more concerned with receiving and sending corporate funds than supporting investment or borrowing,” a banking insider revealed to The Post on Sunday.

The RBZ’s recent announcement, eliminating bank charges for local ZWG currency transactions for non-business individuals, seems like a hollow gesture. Accounts remain at zero, while hidden charges accumulate.

This has driven the private sector to innovate, finding alternative solutions to facilitate business transactions in Zimbabwe.

“We’ve had enough of the banks’ excuses,” said entrepreneur, Richard Moyo. “We’re creating our own payment methods, bypassing the traditional banking system.”

The traditional banking landscape in Zimbabwe is undergoing a seismic shift. Mobile money services, online payment platforms like PayPal, and other digital financial solutions are redefining the way people think about expensive banking transactions going towards less expensive and efficient way of transacting.

Gone are the days of physical branches and rigid banking hours. Today, Zimbabweans can access financial services anywhere, anytime, using their mobile phones or internet-connected devices.

The deletion of a mortgage facility in banks has also created an opportunity for both home seekers and real estates in coming up with home grown solutions bridging the existing financial gaps.