Chiwenga Issues Warning Against ‘Currency Speculators’ Undermining (ZiG) Currency

April 25, 2024
VP Chiwenga | Report Focus News
VP Chiwenga

Vice President Constantino Chiwenga delivered a stern warning on Wednesday, April 24, directed at currency speculators allegedly sabotaging the newly introduced Zimbabwe Gold (ZiG) currency. Addressing attendees at the international business conference held at the Zimbabwe International Trade Fair (ZITF) in Bulawayo, Chiwenga vowed that the law would catch up with those engaging in such activities.

Chiwenga emphasized the permanence of ZiG, stating unequivocally that the new currency would not be susceptible to exchange rate volatility or manipulation by speculators. “ZiG is there to stay forever,” he declared, sending a clear message to individuals attempting to exploit the currency for personal gain.

In a direct warning to currency speculators, Chiwenga cautioned, “Behave or you get shut down or we will lock you up.” He left no room for ambiguity, asserting the government’s determination to clamp down on any illicit activities aimed at undermining the integrity of the (ZiG) currency.

Furthermore, Chiwenga underscored the pivotal role ZiG was expected to play in addressing inflation expectations, a critical factor for achieving sustained stability in both prices and exchange rates within the economy. He called upon all sectors of society, including the public, private sector, households, labour, businesses, civic society, and the international community, to fully embrace and support the ZiG currency.

In addition to combating currency speculation, Chiwenga pledged to implement measures to curb the smuggling of gold out of the country. He emphasized the importance of accounting for every gram of gold extracted from Zimbabwe’s soil, highlighting the significance of the country’s natural resources in anchoring the value of the ZiG currency.

Chiwenga outlined the multifaceted benefits of ZiG, including its potential to facilitate long-term business planning, encourage savings, and stimulate investments in the economy. He asserted that the stability of ZiG would enhance investor confidence, leading to increased production and exports, ultimately driving economic growth.

Despite the optimism surrounding the introduction of ZiG, Chiwenga emphasized the need for vigilance, particularly in monitoring interest rates to prevent speculative borrowing and maintain optimal money supply. He reiterated the government’s commitment to keeping inflation under control through prudent monetary policy.

ZiG, launched on April 5, 2024, was introduced as a replacement for the Zimbabwe dollar, which had been severely eroded by inflation. According to the Reserve Bank of Zimbabwe, (ZiG) currency is backed by gold, foreign currency reserves, and other precious minerals, signaling a strategic shift towards a more stable and sustainable monetary system.