Connect with us

Hi, what are you looking for?

BUSINESS NEWS

Zimbabwe to Ditch USD for ZiG, Says President Mnangagwa

Zimbabwe to Ditch USD for ZiG, Says President Mnangagwa
President Mnangagwa Inaugurates Mutare Teachers College Fruit Juice and Water Processing Plant.

Mutare, Zimbabwe – President Emmerson Mnangagwa has announced plans to phase out the US dollar and introduce the Zimbabwe Gold (ZiG) as the country’s sole currency.

Speaking in Mutare on Thursday, the President expressed concerns about reliance on foreign currency, stating that Zimbabwe must be self-sufficient to avoid potential sabotage.

“We can’t continue to use someone else’s currency, it’s like being in a marriage where one partner doesn’t love the other.

“Biden doesn’t love us, so we can’t keep using his money.

What if one day they decide to sabotage us and we’re left with no choice? That’s why we now have the ZiG,” Mnangagwa said.

Advertisement. Scroll to continue reading.

However, economist Professor Gift Mugano has urged caution, stating the need for careful consideration and planning before introducing a new currency.

Also read: Emmanuel Jalai Earns High Praise from Football Agent Mike Ngobeni

He highlighted the importance of meeting basic minimum requirements, such as a current account surplus, fiscal consolidation, and a productive economy, to ensure the success of the new currency.

“The introduction of a local currency requires careful planning and consideration of economic factors. We must establish the minimum requirements for the introduction of a new currency if we want our currency to succeed.

“This includes a current account surplus, fiscal consolidation, a highly productive economy, single-digit inflation, and stable exchange rates,” Mugano said.

Advertisement. Scroll to continue reading.

Mugano also stressed the need for confidence-building measures, nationwide consultations, and evidence-based policies to support the introduction of the ZiG.

He warned that the sudden introduction of a new currency could lead to market disarray and erosion of trust in government policies.

“The government must develop a culture of seeing through its policies to the expiration date before making conflicting statements.

“The introduction of a new currency requires a well-thought-out plan, and we must learn from past experiences. We need to build confidence, formalize the informal sector, and develop evidence-based policies,” Mugano added.

Mugano also drew attention to the country’s history with currency changes, noting that the introduction of the US dollar in 2009 was a response to market forces, and that the subsequent introduction of the bond notes in 2019 was met with resistance.

Advertisement. Scroll to continue reading.

“In February 2009, the government adopted the USD as the main currency, and in June 2019, the government introduced the bond notes. We must learn from these experiences and develop a well-thought-out plan for the introduction of the ZiG,” Mugano said.

On April 5th of this year, Zimbabwe introduced a new gold-backed currency, known as the ZiG or Zimbabwe Gold, in an effort to alleviate the currency instability and hyperinflation that has afflicted the country for decades.

For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Catch More Updates Below

BUSINESS NEWS

The Reserve Bank of Zimbabwe (RBZ) has devalued the local currency, pushing its exchange rate to ZW$24.39 against the US dollar. This adjustment comes...

LOCAL NEWS

Zimbabwe’s newly launched gold-backed currency, the ZiG, is currently trading at 14 per US dollar, marking its lowest point on the official market since...

BUSINESS NEWS

Zimbabwe’s local currency, the ZiG, has seen a marked increase in public confidence, with a survey showing a 91 percent acceptance rate, up from...

BUSINESS NEWS

Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu says the central bank does not intend to implement a policy requiring recipients of diaspora remittances...

BUSINESS NEWS

The currency markets in several African countries are expected to show signs of stability and potential strengthening against the US dollar in the coming...

BUSINESS NEWS

Harare, Zimbabwe | The Reserve Bank of Zimbabwe (RBZ), under the leadership of new governor John Mushayavanhu, has discarded millions of Zimbabwe Gold (ZiG)...

BUSINESS NEWS

The World Bank has certified the international currency code ZWG for Zimbabwe Gold (ZiG), granting it a unique identity among global currencies, the Reserve...

BUSINESS NEWS

THE microfinance sector is feeling optimistic about the future, thanks to the introduction of the Zimbabwe Gold (ZiG) currency. ZiG is backed by gold...

Advertisement