RBZ to seek global recognition for ZiG
The Reserve Bank of Zimbabwe (RBZ) says it is committed to ensuring the long-term sustainability of the Zimbabwe Gold (ZiG).
According to the apex bank, plans are also afoot to make sure the local currency can be a stand-alone unit of account with global recognition.
This was said by the RBZ deputy governor Dr Innocent Matshe at a Monetary Policy Symposium organised by the Tripartite Negotiating Forum (TNF) in Harare last Friday.
Dr Matshe said the ZIG was working well in the market as a medium of exchange and stakeholders were encouraged to contribute towards making sure that the transactions were facilitated and went smoothly.
“There is no reason for any economic agent not to accept this currency because this is our currency. Of course, labour has issues that they want to raise with authorities. They are free to raise those issues anytime and the Reserve Bank is open to discussing all issues,” he said. This comes after Mr Alfred Makwarimba, the president and principal alternate of the Zimbabwe Federation of Trade Unions (ZFTU), claimed the Apex bank did not consult widely before presenting the monetary policy in April this year.
But central bank chief Dr John Mushayavanhu is on record saying the bank consulted several key stakeholders, including business member groups, civil society and multilateral lenders before launching the new currency.
Zimbabwe’s economy and local currency exchange rate have remained largely stable since the ZiG was introduced earlier this year.
The RBZ deputy governor said the bank’s doors remained open to discuss critical issues, the ZiG included.
“But also, for these economic agents to realise that there is no going back… this is a technically sound currency that stands and will stand on its own on the international market.
“We have seen the ZiG’s value creeping up a little marginally, but what it tells you is that the sound fundamentals used (back up) to ZiG are working.
“The Reserve Bank is committed to walking the talk to never issue a single ZiG outside the reserves that we hold to back that ZiG.Therefore, we expect that inflation will continue to come down and settle at an equilibrium level, which is above zero, which is a positive, but should be in line with the SADC guidelines, which is between three and seven percent.”
By aiming for the SADC inflation targets, the RBZ hopes to foster economic stability and predictability, which are crucial for both local and foreign investments. The commitment by the RBZ to adhere to these inflation bands signifies a robust approach towards economic reform, aiming to restore confidence in Zimbabwe’s monetary system and promote sustainable economic growth.-herald
