Staff Reporter
The Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu, has vowed to unveil strategies aimed at dismantling the foreign currency black market that has undermined the nation's financial stability for over two decades.
Dr Mushayavanhu announced that there are decisive strategies that would be unveiled to eradicate the influence of black-market operatives and restore confidence in the local currency.
"We have implemented robust measures to force black market kingpins out of the shadows, ensuring stability and reliability in our financial system," Dr Mushayavanhu stated.
The informal market, as per the RBZ's October 2021 report, is estimated to control assets exceeding US$500 million.
Dr Mushayavanhu added that ZIG is fully convertible and will address the needs of legitimate foreign currency transactions.
"Customers with verifiable needs can obtain foreign exchange at banks against their ZIG deposits, streamlining transactions and enhancing access to necessary financial services," Mushayavanhu explained.
The introduction of ZIG has been met with praise from various sectors. A businesswoman, Mary Masengwe, remarked on the departure from the hyperinflationary challenges that have long plagued Zimbabwe.
"By anchoring the new currency to gold reserves, the Government has laid a foundation for trust, stability, and growth in our financial sector," she commented.
Edson Mutimbini, a lecturer at a local college, emphasised the strategic implications of the new currency.
"ZIG reflects Zimbabwe's commitment to fiscal discipline and economic prudence. By backing the currency with gold, the Government is signalling its resolve to maintain robust monetary policies and protect the currency's value for the benefit of citizens and investors," he noted.
The introduction of ZIG represents a pivotal and visionary step by the Government. By backing the currency with gold reserves, the Government aims to promote stability, confidence, and fiscal discipline, setting the stage for sustainable economic growth and prosperity.
