Chronicle Editor
Prosper Ndlovu in Victoria Falls
THE continued pricing and exchange rate stability since the introduction of the new Zimbabwe Gold (ZiG) currency has inspired business confidence as more economic players embrace the local unit, amid positive gains against the United States dollar in the last two months.
Reserve Bank Governor, Dr John Mushayavanhu, said this on Thursday in his state of the economy assessment report following the adoption of the ZiG in early April, which replaced the inflation ravaged Zimbabwean dollar.
Backed by precious minerals, mainly gold, and a basket of foreign currency reserves, the ZiG was trading at US$1:ZiG13.30 against the greenback on Thursday from about US$1: ZiG13.56 at its introduction early April.
More businesses have smoothly switched to transacting in ZiG and prices have remained relatively stable with minimal exchange rate movement, said
Dr Mushayavanhu while addressing delegates who attended the official opening session of the 2024 Mining Conference.
“The economy continues to show strong performances across all the sectors since the introduction of the ZiG, and there is no evidence of disruptions in business. In-fact the ZiG has strengthened against the USD,” said the Governor.
“The economy witnessed a smooth transition to the new normal (ZiG environment) without perceived or real loss of value to the public.
“There is relative exchange rate stability as shown by minimal exchange rate misalignment and volatility, a critical condition to safeguard and preservation of value on forex surrender by exporters.”
Dr Mushayavanhu said the exchange rate stability has led to significant price stability as evidenced by a decline in month-on-month inflation for ZiG to minus 2.4 percent in May 2024.
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