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'ZiG a game changer for economy'

by Staff reporter
17 Jun 2024 at 08:56hrs | Views
President Mnangagwa has hailed the Zimbabwe Gold currency (ZiG), backed by gold, as a robust strategy for achieving currency stability and fostering economic growth. Speaking at the 10th CEO Africa Roundtable conference in Victoria Falls, he urged both the business sector and the general public to embrace and utilize the currency effectively.

The ZiG, introduced by the Reserve Bank of Zimbabwe (RBZ) in April, aims to tackle exchange rate volatility, curb inflation, and restore macro-economic stability. The currency is backed by precious minerals, primarily gold, and foreign currency. This has resulted in exchange rate and price stability, enhancing economic prospects.

President Mnangagwa admitted past economic challenges but praised the decision to anchor the currency with gold as a "master stroke." He explained that meticulous preparations over two-and-a-half years, including accumulating gold reserves, underpinned the introduction of ZiG. Zimbabwe has 2.5 tonnes of gold and $300 million in cash reserves to back the currency, with 1.5 tonnes held at the RBZ vaults and one tonne offshore.

The President emphasized the need for continued guidance from business executives to maintain currency stability. CEO Africa Roundtable Board Chairman, Oswell Binha, expressed the business sector's support for ZiG, acknowledging the government's efforts and the currency's solid performance. He committed to engaging with the government to sustain the positive trajectory of the currency reform agenda.

Source - The Herald
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