New currency ZiG won’t fail — President

09 Jun, 2024 - 00:06 0 Views
New currency ZiG  won’t fail — President President Mnangagwa tours Helidrive National Emergency Medical Hospital in Saint Petersberg, Russia yesterday. Picture: Joseph Nyadzayo

The Sunday News

Kudakwashe Mugari in ST PETERSBURG, Russia

THE Zimbabwe Gold (ZiG) is a solid and well-thought-out currency that the Government worked on for at least two years before its introduction, and it will not fail, President Mnangagwa has said.

The ZiG was unveiled by Reserve Bank of Zimbabwe’s new Governor Dr John Mushayavanhu during his inaugural Monetary Policy Statement on 5 April.

The transacting public has embraced the new currency, which has brought exchange rate and price stability, boosting the country’s economic prospects.

Speaking to Russian media outlets here yesterday, President Mnangagwa said the ZiG was gold-backed, hence chances of its failure were next to none.

Zimbabwe, he said, had enough gold in its reserves to back the unit.

“The focus is on our currency, gold-backed, and we have worked for two years to have it,” said President Mnangagwa. 

“We have more than enough reserves to back the currency.

“All along, we have been using other countries’ currencies and now we introduced a currency backed by gold, but we still have other currencies in circulation, and we are happy we have solid gold and solid currency backed by gold.” 

President Mnangagwa said the Government carried out due diligence before introducing the new currency.

The ZiG, he added, laid a strong foundation for Zimbabwe’s economic growth.

“Before I introduced ZiG, we had researched for two years, and we realised we wanted a solid, structured gold reserve-backed currency,” the President said.

“We have more gold; I toured the reserves and saw the gold myself. Our economy is now based on solid fundamentals of the economy.” 

Turning to Western unilateral coercive measures against Zimbabwe, the President said there was no basis for their imposition.

If anything, he said, they were affecting the country’s attempts to access lines of credit.

“Sanctions are illegal. There is no basis. We have not quarrelled with anybody,” he said. 

“There is no justification for those illegal sanctions. Sanctions contribute to the constraints to acquire things and have lines of credit.” 

On the Russia-Ukraine conflict, President Mnangagwa said dialogue was key and the only way out.

“As Zimbabweans, we call for dialogue,” he said. 

“If there are any conflicts, let leaders sit down and find each other.

“It’s a good lesson that whatever conflict we have, it must end on the table, engaging each other.”

President Mnangagwa was invited by Russia’s President Vladimir Putin for the 27th St Petersburg International Economic Forum.

The forum has been held since 1997, and from 2006, it has been taking place  under the auspices of the President of the Russian Federation, who has also attended each event.

Over the past two decades, it has become a leading global platform for members of the business community to meet and discuss key economic issues facing Russia, emerging markets and the world.


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