Reserve Bank of Zimbabwe (RBZ) has introduced a new currency named Zimbabwe Gold, or ZiG, signalling a significant shift from the country's
Speaking from Harare, Governor Dr John Mushayavanhu outlined the RBZ's strategy to stabilize the economy, affirming ZiG's robustness compared to its predecessor, the Zimbabwe Dollar (commonly referred to as RTGs).
"Effective immediately, banks will facilitate the conversion of Zimbabwe dollars to ZiG. Backed by gold reserves and foreign currency holdings, ZiG aims to reinforce monetary strength and ensure financial resilience," stated Governor Mushayavanhu.
Dispelling concerns over the safety of deposits, he reassured the public that existing funds, especially in foreign currencies, remain secure within the banking system. Only Zimbabwe Dollar balances will undergo conversion to ZiG. [post_ads]
Governor Mushayavanhu established the initial exchange rate, equating one US dollar to 13.40 ZiG, a significant improvement from the previous exchange rate of over 40,000 Zimbabwe dollars to one US dollar.
This favourable conversion rate positions ZiG as a formidable currency, surpassing the South African Rand in value, with 18 Rand equivalent to one US Dollar.
Addressing scepticism, the Governor invited other nations to consider adopting ZiG, highlighting its stability and potential as a regional currency.
However, critics argue that mere currency changes do not address underlying economic woes. Dr. Tapiwa Mashakada, an economic expert, emphasized the need for comprehensive reforms to tackle inflation and stimulate export-led growth.
Reflecting public sentiment, Mr Reuben Akili, head of the Combined Harare Residents Association, expressed scepticism towards ZiG, citing historical failures of similar currency initiatives.
Nevertheless, economists such as Miss Happiness Zengeni and Dr Prosper Chitambara cautiously welcomed the introduction of ZiG, attributing its potential to restore economic stability to its gold-backed foundation. [post_ads_2]
In response to rising prices and inflation, Mr Clemence Chiduwa, chairman of the parliamentary finance committee, expressed optimism in ZiG's ability to mitigate economic challenges.
Governor Mushayavanhu encouraged the swift adoption of ZiG, urging businesses and individuals to embrace the new currency within specified timelines. He projected confidence that ZiG would usher the nation into a prosperous era.in paper denominations ranging from 1ZiG to 200ZiG, with metallic coins slated for future release, ZiG represents a pivotal step towards economic rejuvenation in Zimbabwe.
COMMENTS