Staff Reporter
Economists have commended the Reserve Bank of Zimbabwe (RBZ) for the significant increase in the country’s gold reserves.
RBZ announced that it had an accumulation of 793 kilograms, fuelled by a recent law mandating partial royalty payments in gold.
In an exclusive interview with this publication, economist, Prosper Chitambara, believes that this newfound financial stability??? could pave the way for more favourable trade terms and unlock doors to crucial investments.
"This is a momentous step towards strengthening our national asset base, the increased reserves act as a valuable safety net, bolstering our resilience and enhancing our creditworthiness on the international stage,” asserted Chitambara.
In addition, Chitambara expressed that the increase in reserves was enhancing investor confidence, highlighting the potential to attract foreign direct investments, attributing the positive outlook to sound financial management.
“Investor confidence is another area where the golden reserves are casting a positive light. The move is seen as a testament to sound financial management, potentially attracting foreign direct investments that can fuel economic growth and job creation.
“This surge in confidence could also encourage domestic investors to reinvest within the country, further stimulating economic activity,” Chitambra attributed.
The gold reserves will play a key role in stabilizing the Zimbabwean dollar, mitigating inflationary pressures, and fostering trust in local currency stability. This, in turn could encourage increased use of the local currency for transactions, further strengthening the domestic economy.
More so, positive impact doesn't stop at gold. The new law also mandates that mining companies dealing in other minerals like platinum, diamonds, and lithium to contribute a portion of their royalties in-kind. This diversification of mineral reserves further bolsters Zimbabwe's resource wealth and paves the way for responsible and sustainable management of its natural resources.
