Chiwenga backs ZiG

Zimbabwe's monetary policy framework, coupled with the introduction of a stable currency, the Zimbabwe Gold (ZiG), has fostered transactional simplicity, certainty and predictability in the country's monetary and financial services sector, Vice President Dr Constantino Chiwenga has said.

He made the remarks yesterday at a dinner ahead of today's 59th meeting of the Committee of Central Bank Governors in SADC (CCBG) in Victoria Falls where he stood in for President Mnangagwa, the current SADC chair.

The CCBG is responsible for the development of financial institutions and markets, cooperation in international and regional financial relations, monetary investment and foreign exchange policies.

Chiwenga said Zimbabwe's present monetary framework stability had also been buttressed by marked positive movement on all other economic development indicators.

"Your 59th committee meeting, that you are holding tomorrow (today), comes at the appropriate time when the Government of Zimbabwe has successfully launched the new structured currency called Zimbabwe Gold (ZiG)."

He said the Zimbabwe Gold currency is a home-grown solution, which is structured to be fully-backed by a basket of reserve assets, which include gold and other precious minerals and foreign currency.

"The structured currency has fostered simplicity, certainty and predictability in Zimbabwe's monetary and financial affairs. The Government has remained committed to rallying the nation to embrace the Zimbabwe Gold currency and working tirelessly to promote the wider use of our local currency," said the VP. Through the Reserve Bank of Zimbabwe, he said, the Government is putting in place measures that will eliminate gaps that are creating speculative tendencies and unethical business behaviour in the exchange market.

"The positive developments in Zimbabwe Gold and adoption of a floating exchange rate management framework by Zimbabwe, augurs well with the SADC objective of fostering monetary integration in the region, which should see SADC becoming a Monetary Union in the next few years," said Chiwenga.

He reminded governors that diaspora remittances were playing a critical role in boosting foreign currency inflows to finance economic development and called for the adoption of measures to address impediments to attracting diaspora financial flows and ensure that the transmission channels are seamless.

Chiwenga told the SADC Central Bank Governors that their role has been and remains key in creating and sustaining conducive macroeconomic and financial sector environments necessary for progressive investment and development in their countries.

"This includes supporting financing of investments and taking leadership in the space of financial technology as well as other innovations around digital payment systems.

"Let me take this opportunity to commend you for your sterling work aimed at promoting the SADC regional integration agenda, through the efforts of the Committee of Central Bank Governors and its sub-committees.

"Your committee has been pivotal in facilitating the deepening of regional integration, collaboration and cooperation within SADC and broader at the African integration level".