Online Reporter
Wallace Ruzvidzo
Herald Reporter
THE Second Republic’s strategic initiatives to establish a gold-backed foundation for the economy are producing substantial outcomes, President Mnangagwa has said.
He made the remarks yesterday after visiting the Reserve Bank of Zimbabwe (RBZ) headquarters in Harare to inspect the amount of gold reserves the country presently holds.
President Mnangagwa was informed that gold reserves now stand at 4,48 tonnes, making Zimbabwe the third country in SADC with the largest reserves and 11th in Africa.
Speaking to the media during a tour of the RBZ vaults, President Mnangagwa said he was “happy that things are intact”.
“This is my second or third visit to the Reserve Bank. This is where we store the wealth of our country.
“I am happy that things are intact, and the systems seem to be intact also…I am very happy,” he said.
President Mnangagwa said Zimbabwe’s current gold and foreign currency reserves would ensure that the ZiG remains fully backed and resilient to global economic shocks.
Two years ago, the President directed that the country accumulate mineral royalties in physical form, and this has led to a considerable increase in reserves.
Writing on his X handle later yesterday, President Mnangagwa said the reserves were tangible assets that underpin the country’s monetary sovereignty.
“This morning, I inspected the vaults of the Reserve Bank of Zimbabwe to personally verify our national gold and ZiG reserves.
“I am delighted to report that our strategic initiatives to establish a gold-backed foundation for our economy are producing substantial outcomes.
“Presently, Zimbabwe proudly ranks 11th in Africa and 3rd in the SADC region for official gold reserves. These reserves are tangible assets that underpin our monetary sovereignty, rather than mere numbers.”
President Mnangagwa said with over four tonnes of gold and foreign currency reserves, the ZiG remains fully backed and resilient to global economic shocks.
He said as the country progresses towards its goal of five tonnes of gold reserves by year-end, the Second Republic remains committed to fostering a stable, transparent, and prosperous economy for all Zimbabweans.
“Collectively, we are laying the groundwork for a robust future,” said President Mnangagwa.
RBZ Governor Dr John Mushayavanhu said since the President’s visit last year, gold reserves had increased by a tonne.
He said the country now has over US$1,4 billion backing the ZiG.
“And that US$1,4 billion is predominantly comprised of gold reserves, and we are continuing to grow it,” he said.
Dr Mushayavanhu said the total ZiG deposits were about ZiG22 billion.
“If you do your maths, you divide ZiG22 billion by US$1,4 billion worth of reserves, you will find that we can buy back all the ZiG in the market at an exchange rate of just under 26.
“So, there is no reason why you should have a parallel market which is above 30.
“We are narrowing the premium between the official exchange rate and the parallel market rate.
“And that US$1,4 billion is enough to cover one and a half months of imports in this country. We are aiming for anything between three and six months’ cover, but currently we are at 1,5 months.
“What it means is that if for the next one and a half months this country does not receive any foreign currency, we’ll be able to meet our import requirements without any problem,” he said.
Dr Mushayavanhu added that the gold vault “is becoming small” and they are working towards expanding it, owing to increased accumulation.
“Well, according to the numbers that have been shown to me, in Africa, we are at number 11 in terms of gold reserves.
“In SADC, we are at number three,” he said.
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