Harare (New Ziana)-President Emmerson Mnangagwa on Wednesday assured Zimbabweans that the country has enough gold in its reserves to back and stabilise the Zimbabwe Gold (ZiG) currency.
Zimbabwe introduced a new currency, ZiG in April this year as the government maintained that no country in the world could develop without its own currency.
In his State of the Nation Address (SONA) to the joint sitting of the National Assembly and the Senate, President Mnangagwa supported the measures the Reserve Bank of Zimbabwe (RBZ) announced last week to strengthen the ZiG.
“In response to the increased foreign currency pressures, and in a bid to deepen the foreign exchange market, the Reserve Bank allowed for greater flexibility under the willing-buyer willing-seller arrangement,” he said.
“The increased flexibility on the foreign exchange market is expected to further promote effective price discovery and encourage holders of foreign exchange to participate in the willing-buyer willing-seller market,” he added, noting that foreign currency inflows from exports had increased from US$7 billion in 2023 to US$8 billion this year.
Last week, the RBZ announced sweeping monetary policy changes after the economy experienced a resurgence in exchange rate volatility since mid-last month.
President Mnangagwa said the Government remains committed to backing the ZiG currency through setting aside 50 percent of royalties for building reserves.
“It remains the duty of all of us to respect and abide by measures and instruments intended to maintain economic stability and tame inflation,” he said.
He expressed concern about the resurgence of illegal foreign currency exchange activities which are driven by speculation.
“Our country’s banking sector is on sound footing, with sufficient capital and liquidity buffers, while profitability, asset quality and liquidity matrix have also remained stable.
“However, we note with concern the resurgence of parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect all Zimbabweans from economic disruptions,” he said.
Following the introduction of the ZiG in April, the economy experienced relative stability from April this year with inflation averaging -0.82 percent until mid-August.
However, following the resurgence in exchange rate pressures since the second half of August, monthly inflation increased to 1.4 percent in August, and is anticipated to be higher in September.
New Ziana
