The Reserve Bank of Zimbabwe (RBZ) has assured Zimbabweans of currency stability, citing an increase in gold reserves backing the Zimbabwe Gold (ZiG) to over US$450 million.
Governor Mushayavanhu clarified that recent exchange rate movements are market-driven, not a devaluation, & emphasized the bank’s commitment to economic stability.
Speaking in a televised interview with the national broadcaster Zimbabwe Broadcasting Corporation, Mushayavanhu said there no reason why the ZiG will continue to depreciate.
He based his sentiments on money supply which said is under control, while emphasising that gold reserves will continue to grow.
“First and foremost, what happened can not be described as devaluation.
“It was just a manifestation of the event on the ground where the parallel market had just set its agenda, including the retail sector and all the other economic agents in the economy.
“As the central bank, we remain committed to economic stability in anchoring economic growth. I am not expecting any further movements in the exchange rate.
“Let me give you some figures. As of yesterday, total deposits in this whole market were ZiG10,7 billion reserves, and our foreign reserves were US$450 million.
“Let me emphasise that, indeed,, our currency is backed by gold and other precious metals, and the foreign currency balances that we have with the Federal Reser,ve, there is a difference between backing a currency with gold and linking a currency to the prices of gold,” he said.
Zwnews
