The Reserve Bank of Zimbabwe (RBZ) is firmly defending the Zimbabwe Gold (ZiG) currency amid calls from the business community to scrap it due to volatility.
CEO Africa Roundtable (CEO ART) chairperson Oswell Binha criticized the ZiG, claiming it has become a tool for arbitrage and detrimental to the economy, and called for its immediate removal from circulation.
However, RBZ Deputy Governor Dr. Innocent Matshe asserted that the ZiG is crucial for Zimbabwe’s economic stability, emphasizing that the country is not experiencing a currency crisis. Instead, market dynamics reflect necessary adjustments rather than a collapse.
RBZ Deputy Governor Dr. Innocent Matshe
The RBZ has implemented measures to enhance exchange rate flexibility, positioning the ZiG as fundamentally different from previous failed currencies.
Dr. Matshe stated,
“Make no mistake about the ZiG, it is here and it is here to stay.”
He underscored that the current monetary policy is adequate to sustain the economy in the short to medium term, and any depreciation does not signify a crisis.
Economist Dr. Prosper Chitambara supports the continuation of a multi-currency regime but stressed the need for reforms to restore confidence in the ZiG. He argued for a balanced approach integrating monetary, institutional, and fiscal reforms to stabilize the local currency without resorting to complete dollarization.
The RBZ remains committed to the ZiG, pushing back against speculative practices while aiming to foster economic growth and stability.
President Emmerson Mnangagwa has also defended the ZiG, reassuring the nation of his administration’s commitment to supporting the currency.
The government has allocated 50% of royalties towards building reserves to back the currency.
Despite concerns, the RBZ’s efforts aim to maintain economic stability. The ZiG’s introduction brought relief to the transacting public, with confidence growing across economic sectors
