Dr. John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe, offered yesterday additional details about the currency change from Zimbabwean dollars to Zimbabwe gold (ZiG.)

The rate of conversion is not 1 ZiG to 13.56 Zimbabwean dollars, but 1 USD to 13.56 ZiG. To obtain the real rate of conversion it is necessary to multiply the USD/ZML rate (currently at 322) by 13.5612; resulting is ZWL2.499 per ZiG. Obviously this rate of exchange makes ZWL50 current notes worth only 2 U.S. cents, and 4 U.S. cents for the 100’s.

The Zimbabwe gold banknotes are currently being printed, and are expected to be issued to circulation at the end of April.

Banks must convert all account to ZiG over this weekend, and are mandated to accept all ZWL banknotes for 21 days. It is not clear whether the old notes may be redeemed later.

Fractional coins are to be issued later. American coins are current.

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