https://en.sputniknews.africa/20250323/zimbabwean-finance-minister-defends-tight-fiscal--monetary-policies-amidst-currency-stability-1071222269.html
Zimbabwean Finance Minister Defends Tight Fiscal & Monetary Policies Amidst Currency Stability
Zimbabwean Finance Minister Defends Tight Fiscal & Monetary Policies Amidst Currency Stability
Sputnik Africa
Zimbabwe, which introduced gold coins in 2022, launched a bullion-backed currency, Zimbabwe Gold (ZiG), in April 2024 to combat inflation and exchange rate... 23.03.2025, Sputnik Africa
2025-03-23T13:13+0100
2025-03-23T13:13+0100
2025-03-24T16:53+0100
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Finance Minister Professor Mthuli Ncube has defended the government's tight fiscal and monetary policies, asserting that the current level of ZiG circulating in the market is appropriate for maintaining the desired currency stability. He addressed concerns about alleged ZiG shortages, which some critics argue are contributing to artificial inflation.The minister stated that the current inflation level corresponds with the existing ZiG money supply. He further explained that this monetary policy is supported by a tight fiscal policy, which prevents excessive government spending and the need to monetize budget deficits, a practice that would fuel inflation.Ncube underscored the importance of synchronized fiscal and monetary policies, highlighting that they are crucial for maintaining ZiG stability. He argued that this stability delivers the macroeconomic environment citizens have been demanding, allowing for better planning, increased value in the local currency, and a restoration of its ability to store value.The Reserve Bank of Zimbabwe's gold and foreign currency reserves have significantly increased, now exceeding $500 million, providing more than three times the cover for the ZiG in circulation. This, according to the minister, further strengthens the stability of the currency. He urged the public to appreciate the government's efforts in achieving macroeconomic stability, despite the challenges.
https://en.sputniknews.africa/20250113/zimbabwes-reserves-rise-to-533-mln-amid-record-gold-output-boost-currency-stability-central-bank-1070161148.html
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economy, zimbabwe, zimbabwe gold (zig), gold, local currency, currency
economy, zimbabwe, zimbabwe gold (zig), gold, local currency, currency
Zimbabwean Finance Minister Defends Tight Fiscal & Monetary Policies Amidst Currency Stability
Muhammad Nooh Osman
Writer/Editor
Zimbabwe, which introduced gold coins in 2022, launched a bullion-backed currency, Zimbabwe Gold (ZiG), in April 2024 to combat inflation and exchange rate volatility. The move marked Zimbabwe's sixth attempt to establish a functional local currency in 15 years.
Finance Minister Professor Mthuli Ncube has defended the government's tight fiscal and monetary policies, asserting that the current level of
ZiG circulating in the market is appropriate for maintaining the desired currency stability. He addressed concerns about alleged ZiG shortages, which some critics argue are contributing to artificial inflation.
"A tight monetary policy is technically defined by limited money supply," he told The Herald, explaining that the convergence of official and parallel market exchange rates is expected to be sustained. "This is not artificial; it's a deliberate strategy to manage inflation."
The minister stated that the current inflation level corresponds with the existing ZiG money
supply. He further explained that this monetary policy is supported by a tight fiscal policy, which prevents excessive government spending and the need to monetize budget deficits, a practice that would fuel inflation.
Ncube underscored the importance of synchronized fiscal and monetary policies, highlighting that they are crucial for maintaining ZiG stability. He argued that this stability delivers the macroeconomic environment citizens have been demanding, allowing for better planning, increased value in the local currency, and a restoration of its ability to store value.
The Reserve Bank of Zimbabwe's gold and foreign currency reserves have significantly increased, now exceeding $500 million, providing more than three times the cover for the ZiG in circulation. This, according to the minister, further strengthens the
stability of the currency. He urged the public to appreciate the government's efforts in achieving macroeconomic stability, despite the challenges.
