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Zimbabwe to seek global recognition for ZiG

by Staff reporter
24 Jun 2024 at 10:44hrs | Views
The Reserve Bank of Zimbabwe (RBZ) is committed to ensuring the long-term sustainability of the Zimbabwe Gold (ZiG) as a viable currency and aims to establish the local currency as a globally recognized unit of account.

Dr. Innocent Matshe, RBZ deputy governor, emphasized this commitment during a Monetary Policy Symposium in Harare, organized by the Tripartite Negotiating Forum (TNF).
Dr. Matshe stated that ZiG is functioning effectively in the market and encouraged stakeholders to support smooth transactions. He acknowledged concerns from labor groups about the lack of consultation before the monetary policy was announced but reiterated that the RBZ is open to discussions with all economic agents.

Despite initial concerns, the ZiG has contributed to economic and currency exchange rate stability since its introduction earlier this year. Dr. Matshe assured that the ZiG is backed by sound fundamentals and reserves, ensuring no issuance beyond the bank's reserves. This approach is expected to help maintain inflation within the Southern African Development Community (SADC) guidelines of three to seven percent, fostering economic stability and predictability, which are essential for local and foreign investment.

The RBZ's adherence to these inflation targets reflects a robust commitment to economic reform, aiming to restore confidence in Zimbabwe's monetary system and promote sustainable economic growth.

Source - The Herald