Online Reporter
Samuel Kadungure
News Editor
RESERVE Bank of Zimbabwe Governor, Dr John Mushayavanhu, together with his delegation from the Central Bank, was in Mutare today for the Provincial Monetary Policy Presentation.
During the session, he outlined key interventions undertaken to stabilise and grow the economy.
Dr. Mushayavanhu emphasised the importance of ensuring that all circulating money is fully backed by reserves.
“When money is not backed by anything, it loses value. As we speak, we have successfully managed to fully cover reserve money, and we have also achieved full coverage of total deposits, including ZiG deposits.
“We are also presenting this monthly policy statement at a time when the country’s foreign exchange earning capacity is significantly improved, thanks to the commodities that we are mining and exporting. Last year, we received total inflows of US$16 billion. We have also managed to sustain demand for ZiG. When we started, the amount of ZiG in circulation was less than 20 percent of total transactions. Now, it is around 40 percent in ZiG, which means our currency is gaining traction.
“We have also ensured stability in the banking sector. I don’t think you have heard of any bank closures – there is nothing like that. The relationship between the Central Bank and the Minister of Finance is at an all-time high. One of the reasons you end up with hyperinflation is when there is no coordination between the Central Bank and Treasury. I will walk you through what we have done since 2024, then I will take you through the measures we implemented last Friday to sustain the stability we are seeing, and finally, I will walk you through the new currency, the Big Five ZiG banknote series, that we are launching,” he said.
