Pixie DustZIMBABWE | In a compelling address to business leaders at a Zimbabwe National Chamber of Commerce gathering in Gweru, RBZ Governor John Mushayavanhu passionately calls for the restoration of trust in the nation’s banking system. Recognizing the erosion of confidence over the past two decades due to currency fluctuations, Mushayavanhu pledges to usher in a new era of accountability and stability.
With determination in his voice, Mushayavanhu assures the audience that under his stewardship, the Reserve Bank of Zimbabwe (RBZ) will adhere to stringent measures to prevent the detrimental effects of excessive money printing, which have plagued the economy in the past. “People need to trust the banking system again… We will not allow excessive printing of money because it causes inflation,” he asserts, making a personal commitment by saying, “If that happens under my watch, please crucify me.”
One of the key pillars of Mushayavanhu’s strategy to rebuild confidence is the introduction of the new currency, Zimbabwe Gold (ZiG). He underscores its solidity by revealing that it is backed by a substantial reserve of 2.5 tonnes of gold and US$300 million, with meticulous annual audits planned to ensure transparency and accountability. In his view, ZiG holds the potential to stabilize exchange rates and mitigate inflation, offering a beacon of hope for economic stability.
Moreover, Mushayavanhu emphasizes the importance of public perception and confidence in ZiG’s viability. He urges citizens to embrace the new currency, highlighting its accessibility for transactions within banks and its potential to facilitate smoother financial transactions.
However, despite the optimistic outlook, reports hint at challenges ahead. Recent observations suggest a decline in ZiG’s value on the black market, where it currently trades at around 20 to the U.S. dollar, compared to its initial launch rate of 13.56. This disparity underscores the ongoing struggle to maintain stability amidst economic fluctuations.
Mushayavanhu’s impassioned plea for trust restoration, coupled with tangible efforts to ensure monetary stability, sets the stage for a pivotal moment in Zimbabwe’s economic trajectory. As the nation navigates these turbulent waters, Mushayavanhu’s unwavering commitment to accountability and transparency offers a glimmer of hope for a brighter future.
