Zimbabwe – As Zimbabwe grapples with the introduction of its new currency, the Zig, parents and teachers face uncertainty with the reopening of schools for the winter term.
The ongoing currency crisis has caused widespread anxiety about how school fees, set in US dollars, will be paid in a predominantly cash-based society.
Last month, the Reserve Bank of Zimbabwe introduced the Zig in an attempt to stabilize the national economy. However, a significant shortage of the new currency has complicated transactions, affecting everything from school fees to daily commuting.
The situation was further complicated over the weekend when Reserve Bank Governor John Mushayavhanu made a sudden reversal, announcing that old currency bond notes, previously phased out at the end of April, could still be used. Despite this attempt to provide relief, the value of bond notes has severely depreciated, plummeting from 5,000 to 80,000 bond notes per US dollar in just a few weeks.
The currency shortage poses a particular challenge for parents needing to pay for school-related expenses.
Although fees are denominated in US dollars, they can be converted and paid in local currency at government schools. However, the scarcity of Zigs and the devaluation of bond notes have left many unsure about how to secure enough funds.
Additionally, the crisis impacts transportation, especially critical for students attending boarding schools or those who travel long distances.
Local bus and taxi services, essential for getting students to schools, are under threat as petrol stations now demand payment in US dollars, and many operators struggle to obtain the necessary cash.
The chaos surrounding the new Zig currency and the economic policies affecting it are likely to have broader implications for Zimbabwe’s economy and social stability.
As schools open and the demand for stable currency continues, the government faces pressure to resolve these issues promptly to ensure that education and daily life are not disrupted further.
https://www.africanexponent.com/zimbabwe-faces-currency-chaos-as-school-term-begins/
