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Message: [QUOTE="Nehanda, post: 26679, member: 2262"] Zimbabwe Gold currency values should strengthen during March as companies prepare to meet tax obligations. The Reserve Bank anticipates increased demand for ZiG when businesses fulfill quarterly corporate tax requirements due March 25. This pattern mirrors events from December when financial institutions sought ZiG funds to process tax payments for clients holding foreign currencies. Current exchange markets show rates improving from US$1:ZiG35 to approximately US$1:ZiG30, with further strengthening expected as the tax deadline approaches. According to Zimbabwe law, corporate taxpayers must submit payments four times yearly. These deadlines fall on March 25, June 25, September 25, and December 20 annually. The Revenue Authority typically collects around US$300 million equivalent in corporate income taxes during each quarterly period. As demand increases, individuals holding ZiG balances may experience greater negotiating power when exchanging currency, according to Reserve Bank Governor Dr. John Mushayavanhu during his recent appearance on ZTN's Beyond the Dollar podcast. The local currency maintains steady usage at approximately 30 percent of all transactions nationwide. This represents meaningful growth from previous levels of 20 percent recorded before the current Reserve Bank leadership took charge. Officials have dismissed suggestions that ZiG lacks public acceptance, pointing to consistent transaction data showing gradual adoption across economic sectors. Market stability continues supporting confidence as more businesses integrate the national currency into regular operations. Zimbabwe currently operates under a multi-currency system, permitting both foreign and domestic currency transactions. However, monetary authorities have established long-term objectives to phase out foreign currency usage completely by 2030. This transition plan aims for gradual implementation over several years rather than immediate changes to economic structures. The central bank continues monitoring currency performance as part of broader efforts to establish sustainable monetary policies supporting national development goals and financial stability throughout the country. [/QUOTE]

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