daniel chigunwe
Business Writer
The ruling Zanu-PF party has resolved to expedite de-dollarisation and promote the use of the Zimbabwe Gold Currency (ZiG) and promote the use of domestic currency as the country’s mono currency.
In resolutions from its recent annual national people’s conference, the governing Zanu-PF pledged to “take robust measures to strengthen the purchasing power of the ZiG and entrench its usage and to “promote the wider circulation of the ZiG currency and its availability in all denominations.”
ZiG, backed by gold, selected minerals and foreign reserves, was introduced in April 2024 to combat inflation.
Initially, the ZiG’s exchange rate against the US dollar was relatively stable, averaging around 13,6 ZiG to US$1.
However, a significant depreciation occurred on September 27 when the Reserve Bank of Zimbabwe (RBZ) slashed the value of the ZiG by 43 percent, taking it from 13,56 ZiG to the US dollar at its launch to 24,4 ZiG to the dollar.
This sharp decline, reminiscent of the “Black Friday” incident of 1997, highlights the ongoing currency challenges facing Zimbabwe.
While the official exchange rate is trading at around 27 ZiG to US$1, the parallel market rate is significantly higher, ranging from 40 to 45 ZiG to US$1.
Additionally, the ZiG is not widely accepted by informal businesses, which largely prefer US dollars.
The Zanu – PF conference also resolved to curb money laundering, speculation and parallel market arbitrage, criminalising economic sabotage and prescribing deterrent penalties.
It also called for synchronised, harmonised and coordinated fiscal and monetary policies to stabilise the economy, alongside a robust anti-corruption framework.
Other key resolutions include incentivising indigenous participation in mining, amending EPO legislation, enforcing the “Use it or Lose it” policy, reviving closed mines, granting land owners first refusal on mining claims, revoking non-operational special grants and incentivising investors to purchase local raw materials.
Bongani Ndlovu