https://en.sputniknews.africa/20241115/zimbabwe-taking-steps-to-stabilize-local-currency-amid-concerns-about-its-value-says-minister-1069247515.html
Zimbabwe Taking Steps to Stabilize Local Currency Amid Concerns About Its Value, Says Minister
Zimbabwe Taking Steps to Stabilize Local Currency Amid Concerns About Its Value, Says Minister
Sputnik Africa
Zimbabwe, which introduced gold coins in 2022, launched a bullion-backed currency, Zimbabwe Gold (ZiG), in April to combat inflation and exchange rate... 15.11.2024, Sputnik Africa
2024-11-15T14:07+0100
2024-11-15T14:07+0100
2024-11-15T14:07+0100
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Zimbabwe's government is taking steps to stabilize the local currency, the Zimbabwe Gold (ZiG), amid concerns about its value. Minister of Justice, Legal and Parliamentary Affairs Ziyambi Ziyambi assured the Senate that measures are being implemented to increase public confidence in the currency, which has been affected by speculation.He indicated that Finance Minister Prof. Mthuli Ncube will address the issue in the upcoming 2025 budget, set to be presented on November 28.Minister Ziyambi highlighted that Zimbabwe has substantial reserves of close to $500 million, along with over 10 billion ZiG in circulation, enough to support the currency at a rate lower than the current black market exchange rate.The ZiG was introduced by the Reserve Bank of Zimbabwe in April, intended as a stable currency backed by US dollars, gold reserves, and other precious minerals. Initially, it traded at a rate of approximately 13 ZiG to $1.However, speculation led to a decline in its value, prompting the bank to adjust the exchange rate to roughly 24.5 ZiG to $1 last month.
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economy, zimbabwe, zimbabwe gold (zig), local currency, currency, southern africa, reforms
Zimbabwe Taking Steps to Stabilize Local Currency Amid Concerns About Its Value, Says Minister
Muhammad Nooh Osman
Writer/Editor
Zimbabwe, which introduced gold coins in 2022, launched a bullion-backed currency, Zimbabwe Gold (ZiG), in April to combat inflation and exchange rate volatility. The move marked Zimbabwe's sixth attempt to establish a functional local currency in 15 years.
Zimbabwe's government is taking steps to stabilize the local currency, the Zimbabwe Gold (ZiG), amid concerns about its value. Minister of Justice, Legal and Parliamentary Affairs Ziyambi Ziyambi assured the Senate that measures are being implemented to increase
public confidence in the currency, which has been affected by speculation.
"While I will not delve into specific measures, that will be addressed by the Minister of Finance, but the major issue affecting the value of our currency is lack of confidence. Government is working on measures to address the issue," he told the lawmakers.
He indicated that Finance Minister Prof. Mthuli Ncube will address the issue in the upcoming 2025 budget, set to be presented on November 28.
Minister Ziyambi highlighted that Zimbabwe has substantial reserves of close to $500 million, along with over 10 billion ZiG in circulation, enough to support the currency at a rate lower than the current black market exchange rate.
The ZiG was introduced by the Reserve Bank of Zimbabwe in April, intended as a stable currency backed by US dollars, gold reserves, and other precious minerals. Initially, it traded at a rate of approximately 13 ZiG to $1.
However, speculation led to a decline in its value, prompting the bank to
adjust the exchange rate to roughly 24.5 ZiG to $1 last month.
