Zimbabweans urged to embrace ZiG for macroeconomic stability

Bulawayo (New Ziana)-Members of the public and local businesses should embrace the Zimbabwe Gold (ZiG) as it is set to bring innumerable benefits, chiefly price and exchange rate stability, Vice President Constantino Chiwenga said on Wednesday.

He was speaking during the official opening of the International Business Conference which took place on Wednesday on the sidelines of the ongoing 64th edition of the Zimbabwe International Trade Fair (ZITF).

The fair is running under the theme: “Innovation As A Catalyst For Industrialisation and Trade”.

VP Chiwenga said the government, through the central bank, introduced a structured currency, the ZiG, to tame the exchange rate-induced instabilities that had engulfed the economy.

“A stable macroeconomic environment is critical in the charting and the harnessing of innovation towards full industrialisation and trade,” he said.

He said the ZiG shall at all times be anchored and fully backed by a compost basket of reserves comprising foreign currency and precious minerals, predominantly gold.

The bold move, he said, symbolizes the unwavering commitment of the government to the de-dollarisation program, premised on fiscal discipline, monetary prudence, and economic revitalization.

“When we talk of, say, predominantly gold, we cannot keep tons of gold in the central bank, or coal, iron, lithium or platinum. We will sell them and we shall make sure that every gram of gold shall not leave Zimbabwe,” he said.

“We are going to put strict measures that will see heads rolling. Every gram of our gold must be accounted for. We need our gold and because it is gold-given, no one came with gold in Zimbabwe but it is in our soil,” he said, adding the country will soon be venturing into oil and gas mining to boost the local currency.

The ZiG, he said will serve as a reliable medium of exchange, a store of value, and a unit of account supporting efforts to attract investment, stimulate growth, and enhance the country’s competitiveness in the global marketplace.

“In addition, the Reserve Bank of Zimbabwe has also adopted a market-driven exchange rate system based on the concept of a willing buyer, willing seller. These arrangements, supported by the RBZ`s commitment to optimal money supply management, will go a long way in fostering exchange rate stability, thus minimizing exchange rate premiums of yesteryears,” said VP Chiwenga, adding the government wants to see interest rates dropping to below 10 percent.

“We want them to go down as long as there is financial discipline. This will have to be done. In addition, structured currency is expected to support long-term business planning and encourage savings and investment in the economy. This will go a long way in restoring confidence in the domestic currency. The stability of the ZiG will boost investor confidence in the economy and lead to increased production and exports,” he explained.

“The economy will also experience an increase in domestic demand as people’s purchasing power gradually improves amid low and stable prices,” said VP Chiwenga, adding the central bank will monitor interest rates to keep away the speculative borrowing, to ensure optimal money supply, and to keep inflation under control.

“Given these boundless benefits, I therefore call on the public, the private sectors, you, yourselves and the majority here, including the households, labor and businesses, civic society, and the international community, to fully embrace and support the ZiG,” he said.

To ensure the exchange rate remains stable, VP Chiwenga said the government is committed to using 50 percent of the foreign currency proceeds from surrender requirements for strategic interventions in the foreign exchange in the bank market, a development which will also enhance the demand for the local currency.

“The monetary policy statement has realigned interest rates which used to be around 150, 130 percent to 20 percent, a positive development that will go a long way in supporting credit to the productive sectors and boosting the country’s growth prospects,” said.

“The expected benefits of these monetary policy measures are good and quite comforting. The structured currency and the accompanying monetary policy framework will ensure price and exchange rate stability which is critical for value preservation.”

VP Chiwenga declared that the new currency will not be subject to exchange rate volatility or manipulation by speculators, warning money changers that they risk being jailed.

“Speculators should cease jumping around, trying to play around in the supermarkets, we know it. They should behave or you get shut down. Or we lock you up,” he warned.

New Ziana