Efforts Underway To Strengthen ZiG Currency - VP Chiwenga
Vice President Constantino Chiwenga said that the government is monitoring financial market activities to identify ways to strengthen the Zimbabwe Gold (ZiG) currency, which has been losing value on the parallel market in recent months.
Currently, fuel service stations do not accept ZiG, and supermarkets and wholesalers are relying on street rates when selling goods in the local currency.
Speaking at the burial of national hero (Retired) Brigadier General Shadreck Ndabambi at the National Heroes Acre in Harare on Wednesday, September 4, Chiwenga, who is serving as Acting President, said the government is implementing measures to encourage the wider use of the ZiG. Said Chiwenga:
No nation will develop without sovereign control, defence and growth of its own national currency. Our government introduced the Zimbabwe Gold as our new sovereign currency.
It is our responsibility as a nation to embrace and protect the new currency as a bedrock and anchor of our economic development.
Let me assure you that government is working to promote the wider use of our local currency and is putting in place measures that will eliminate gaps that are creating arbitrage opportunities in the exchange market.
Government will continue to monitor the operations of our financial markets and promote efforts to grow and stabilise our national currency.
The Reserve Bank of Zimbabwe (RBZ) introduced the Zimbabwe Gold (ZiG) currency in April, following the collapse of the Zimbabwe dollar (RTGS and bond notes).
Just five months later, the new currency has experienced significant depreciation, now trading at US$1 to ZiG24 on the parallel market. At the time of its launch, the ZiG was valued at US$1 to ZiG13.50.
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