Zimbabweans outraged after RBZ devalues ZiG

A storm of outrage has swept across Zimbabwe following the Reserve Bank of Zimbabwe's (RBZ) shocking decision to devalue the Zimbabwe Gold (ZiG) currency by 75%. The drastic measure has ignited a wave of criticism from civil society groups, economists, and the general public, all voicing their concerns about the severe impact on everyday life and accusing the central bank and government of worsening economic hardships.

The Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) was among the first to respond, calling for immediate salary adjustments for workers in light of the devaluation. "Mthuli Ncube and the employing authorities should not wait to be told that since the ZiG has officially been devalued by 75%, the salary component in ZiG must automatically be adjusted. The stability of this Republic rests on the shoulders of workers," ARTUZ tweeted.

Critics on social media have expressed alarm over the ramifications for civil servants and pensioners. One user, @Vahombe07, highlighted that the devaluation means a civil servant earning 5,000 ZiG now effectively has only half that value. "School fees and prices of basic goods are set to skyrocket by almost 100% to counterbalance the devaluation," the user warned.

Outspoken commentator Prisca Mutema condemned the government's monetary policies, stating that the devaluation has further eroded public trust. "The black market players have received a go-ahead from the government to bury the ZiG," she cautioned, predicting a sharp rise in inflation rates by the end of the year. Mutema further speculated that the ZiG could plummet even further by December if the current trajectory continues.

Businessman and lawyer Tawanda Nyambirai questioned the credibility of the RBZ's actions, remarking, "The #ZiG is supposed to be anchored on gold. Since its introduction, the gold price has gone up significantly, yet the #ZiG has done the opposite. This devaluation undermines trust and creates the impression that the currency was anchored on lies."

Economist Gift Mugano urged the government to abandon the ZiG entirely and revert to the US dollar until economic fundamentals are restored. Meanwhile, Zanu PF sympathizer Kudzai Mutisi criticized the government's understanding of "gold backing," arguing that merely holding gold reserves without deploying them effectively is futile. "Filling a vault with gold and saying it's backing a currency won't create stability," he tweeted.

Retailers and businesses have also felt the brunt of the devaluation. Bertha Mwonzora, daughter of MDC leader Douglas Mwonzora, lamented that the government's actions are only fueling the black market. User @admiredube noted that the Zimbabwe Stock Exchange (ZSE) has lost an equivalent of USD 1.9 billion in market capitalization, with further volatility expected in the coming days.

As the public sentiment reflects a deepening skepticism towards the government's economic policies, Matigari aptly summarized the prevailing mood: "This is playing with people's lives."

The RBZ's decision to increase interest rates and tighten monetary policy comes amid rising inflation, placing immense pressure on the central bank to stabilize the economy. However, many Zimbabweans view the devaluation as a severe blow to the already embattled ZiG currency, leaving them questioning the efficacy of the government's monetary strategies.kurigo