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New ZiG currency is my brainchild, a product of local intellect — says somersaulting RBZ governor

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By Tinei Tuhwe 


RESERVE Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has expressed newfound optimism in the potential success of the recently launched Zimbabwe Gold (ZiG) currency.

Just a month ago, Mushayavanhu cautioned that the ZiG might face challenges and attributed impending failures to external influences, particularly from the World Bank.

However, during a breakfast meeting hosted by the Zimbabwe National Chamber of Commerce (ZNCC) in Masvingo, the apex bank chief vociferously defended the locally-developed currency claiming its his brainchild.

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“The new currency, ZiG, will not fail as it was not imposed on the market, but a well-thought out and purely Zimbabwean idea that should be embraced by all citizens.

“The ZiG is a product of Zimbabwean intellect and initiative, conceived by myself with significant local input. We consulted widely yes, but ZiG is my product as the governor of the Reserve Bank and if it fails it’s my fault; it’s my brainchild,” said Mushayavanhu.

“It reflects our autonomy in financial matters, distinct from foreign influences, this currency was not imposed on us but  it was carefully considered and is backed by substantial economic reserves, including gold,” he added.

The governor also reiterated he is ready to take blame if the ZiG fails.

“If at all it fails, which I do not foresee, the responsibility will be ours to bear.

“But I firmly believe in our collective capacity to make the ZiG a symbol of our economic independence and strength,” he added.

He warned unscrupulous businesses selling goods and services using the ZiG black market rates that they risk the wrath of the law.
Citizens must report such culprits to the Financial Intelligence Unit (FIU) so justice takes its course, he added.

Mushayavanhu disclosed that the new currency is backed by reserves totalling US$285 million, which include 2.5 tonnes of gold and US$100 million in cash audited annually.

“These reserves will undergo independent audits annually, ensuring transparency and building public trust,” he said.

The RBZ boss also addressed the circulation dynamics of the ZiG, stating that the country currently has about ZiG 1 billion in circulation, roughly equivalent to US$80 million.