Zimbabwe: RBZ Governor Assures Public On Financial Stability Amid ZiG Introduction

Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu has re-affirmed the Central Bank’s commitment to financial stability in the country following the introduction of the gold-backed currency, Zimbabwe Gold (ZiG).

In an interview with a local television network, Dr. Mushayavanhu reassured the public that the RBZ possesses ample reserves to meet the foreign currency needs of legitimate businesses, thereby eliminating the necessity for companies to resort to the black market for import payments.

“The Reserve Bank of Zimbabwe has enough reserves to satisfy the foreign currency requirements of all legitimate businesses and no company needs to go to the black market to pay for imports,” Dr. Mushayavanhu said

He underscored the importance of earning public confidence through consistent action and transparency, rather than relying solely on legislative measures.

“Confidence cannot be legislated. No. We have to earn it as the Central Bank,” Mushayavanhu said adding “We have to walk the talk.”

In line with this commitment to transparency, Dr. Mushayavanhu advocated for concise communication in future monetary policy statements, focusing on demonstrating the RBZ’s adherence to its promises.

“Future Monetary Policy Statements must be just two paragraphs to say, we are walking the talk,” he said

These statements from Central Bank chief come amidst ongoing discussions surrounding the introduction of the gold-backed currency. The move aims to bolster confidence in the national currency and stabilize the country’s financial system.

Earlier in the week, Finance and Economic Development Minister Professor Mthuli Ncube addressed legislators in Parliament, urging patience and understanding from the public regarding currency-related challenges.

Minister Ncube highlighted the complexities involved in managing the nation’s currency, including the need to ensure the availability of precious resources such as gold and diamonds.

“As the government, we would want this to be acceptable, that citizens have confidence and you can only build that confidence if you communicate and explain how it works in simple language,” Ncube said.

Minister Ncube further stressed the importance of educating the public about the design and implementation of the currency, urging citizens to have faith in Zimbabwe Gold (ZiG) and use it consistently.

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