Staff Reporter
Following the introduction of the new Zimbabwe Gold (ZiG) currency last week, the Reserve Bank of Zimbabwe (RBZ) issued a comprehensive statement yesterday addressing the concerns of citizens.
This move comes after uninformed discussions tried to sway public opinion against the acceptance of ZiG.
The RBZ's statement clarified that the ZiG currency would be a legal tender under the country's multi-currency system.
"The ZiG currency will operate alongside other currencies prescribed in the RBZ Act, including the USD, Euro, Rand, Pound Sterling, Yen, and more," the Bank confirmed.
The RBZ stated that the ZiG currency would be used for a range of financial purposes, such as the discharge of financial and contractual obligations and the valuation of assets and liabilities.
In its commitment to bolstering confidence in the local currency, the RBZ outlined how the ZiG is expected to preserve the integrity of Zimbabwe's multi-currency framework.
"The structured currency and the monetary policy measures accompanying it are aimed at bringing about price and exchange rate stability within the economy," said the central bank.
Addressing questions on international recognition, the RBZ acknowledged that while ZiG is a local currency, efforts are underway to achieve full convertibility in alignment with the regional agenda for macroeconomic convergence under the SADC Protocol on Finance and Investment.
In a robust response to concerns regarding the backing of the currency, the RBZ disclosed that ZiG would be consistently supported by a composite basket of reserves, including foreign currency and predominantly gold, accruing as part of in-kind royalties and securely stored within the bank's vaults.
The public's trust in the new system was also a focal point.
"The structured currency will be subject to independent external audits," assured the RBZ.
To dispel any doubts and educate the populace, the RBZ is set to initiate educational and awareness campaigns, utilizing extensive media platforms to reach every corner of the country, with a focus on rural areas.
Economist Getrude Mhlanga said that this transparency by the RBZ is a key element in rebuilding trust and ensuring that the currency reflects real value, supported by the containment of inflation and the maintenance of positive real interest rates to foster savings.
Meanwhile, in a tour by this publication, evidence emerged that retailers are progressively pricing goods in ZiG and accepting payments in the new currency, signifying a gradual but tangible shift in the country's economic landscape.
