Over the last few years Zimbabweans have become used to the modern world when buying and selling by using electronic transfers most exclusively when using local currency either on-line transfers, or debit cards at point-of-sale machines in shops, or mobile money wallets for a range of small payments or a swathe of online payments, such as buying Zesa Tokens.

Cash was useful for some small payments, or as change when submitting US dollar banknotes, but had stopped being used for most purchases. Although electronic payments above fairly low limits attracted a 2 percent transfer tax plus a small bank charge, cash withdrawals attracted the same tax plus a far higher bank charge, so generally you won by going digital.

So there were those changes that limited the size of transactions and the total over a period, and while the rules allowed merchants to accept anything, they could not pay anything from their wallets and had to transfer the money to their bank accounts again electronically, before they could use it. The recent inflation of the old Zimbabwe dollar, and the refusal of RBZ to print larger value banknotes, helped accelerate this trend towards a largely cashless society, with the banknotes in circulation just used as small changed to pay for bus fares, and buy sweets, soft drinks and cigarettes from pavement vendors.

The Financial Intelligence Unit (FIU) of the Reserve Bank Of Zimbabwe has made it clear that low limits on withdrawals of ZiG banknotes and coins will apply. Fairly obviously the Reserve Bank expects most payments in ZiG will continue to be done electronically and is simply issuing lower denomination notes and coins as a convenience, not a way of buying a month`s groceries, let alone anything larger. The largest ZiG note, the ZiG200, is equivalent to roughly US$15, the RBZ does not see banknotes taking over from electronic payments for anything particularly pricey, Individuals are allowed to withdraw ZiG 3 000 a week in notes and coins, a reasonable amount roughly equivalent to US$ 200 and so enough for most families to buy their weekly groceries if they insist on using physical rather than electronic money and certainly not enough to buy in supplies.

Products such as petrol and diesel will soon be sold in the recently introduced ZiG currency as transactions shift from being largely US Dollar denominated to local currency. The RBZ governor warned few companies that are not accepting the ZiG currency that a time will come when they will need local currency to settle their tax obligations. This comes as the ZiG continues to inspire confidence across all markets as the legal tender of choice, following its introduction early last month with notes and coins having started circulating on Tuesday. The Governor is surely that as the year progresses more products and services would be sold in the ZiG. He cautioned businesses from selling exclusively in US Dollars as it would prove detrimental to their operations going forward.

Currently the country is operating on an 80 percent of the transactions in USD and 20 percent in ZiG. They said they are going to gradually allow a situation where we move from 80-20 to 70-30 to 60-40 to 50-50.This will enable more products to be sold in local currency. Those who are refusing to sell their products in ZiG will hunt them (ZiGs) in the future and not find them since starting in June this year the Quarterly Payment Date, 50 percent of the taxes will be paid in ZiGs and for all those who are selling their goods in USD will have difficulties in paying their taxes and when they want to buy it from the market it will be expensive. The governor further encouraged fuel dealers to sell some of their fuel in ZiG so that they will have enough money to pay tax wen it falls due. Business owners that do not comply to this, the Central Bank will move in to penalize them