By Chantelle Muzanenhamo
A former employee of Chitungwiza Municipality has discovered that the US$5,156.95 owed to him following the termination of his contract in August 2015 has reduced in value to a mere ZiG2.06 due to a series of currency conversions over the years.
A letter dated November 5, 2024, from the municipality’s finance director, Evangelista Machona, detailed the abrupt decline in the amount owed, attributing the drastic change to Zimbabwe’s ongoing monetary instability.
The letter, which has since been leaked to the press, has raised eyebrows and intensified discussions around the reliability of local currencies in Zimbabwe.
According to Machona, the former employee had been owed US$5,156.95 when his contract ended. However, in February 2019, the country transitioned from the US dollar to the Real-Time Gross Settlement (RTGS) system at a rate of 1:1, converting the amount directly to RTGS5,156.95. Fast forward to April 5, 2024, when the RTGS was converted to the newly introduced gold-backed Zimbabwe Gold (ZiG) currency at a staggering rate of 1:2498.7242, resulting in the final amount of just ZiG2.06.
The letter stated, “Council now owes you ZiG 2.06,” summing up the disheartening outcome of what was once a significant sum of money.
This case highlights the inherent challenges faced by many employees due to volatility of the Zimbabwean currency which has changed in names and forms over the years. Some people have lost a life time savings due the aforementioned as the currency continues being a thorn in the flesh of many Zimbabweans