Innocent Sibonginkosi Ncube<\/p>\n\n\n\n
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HARARE \u2013 Zimbabwe\u2019s President Emmerson Mnangagwa on Wednesday vowed to implement corrective measures to protect people\u2019s incomes after the country\u2019s new gold-backed currency slid on the black market just five months after its introduction.<\/p>\n\n\n\n
The ZiG, which stands for Zimbabwe Gold, was devalued by 43% last Friday, following a nearly 47% drop on the black market.<\/p>\n\n\n\n
\u201cWe note with concern the resurgence of the parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect Zimbabweans from disruptions,\u201d Mnangagwa stated in his State Of the Nation address (SONA).<\/p>\n\n\n\n
Since the devaluation, the ZiG has further weakened from Friday\u2019s rate of 24.3902 to 25.2824 on Wednesday, while on the black market it has slipped to 32 per U.S. dollar.<\/p>\n\n\n\n
Mnangagwa explained that the devaluation of the ZiG will allow for \u201cgreater flexibility\u201d and will encourage individuals holding foreign exchange to trade on the official market.<\/p>\n\n\n\n
\u201cGovernment remains committed to backing the currency through setting aside 50% of royalties to build reserves,\u201d he added.<\/p>\n\n\n\n
The ZiG represents Zimbabwe\u2019s sixth attempt at establishing a stable currency in 15 years, following a period of hyperinflation under former longtime leader Robert Mugabe.<\/p>\n\n\n\n
In the wake of a meeting with central bank officials, the Bankers Association of Zimbabwe expressed concerns on Wednesday, stating that last week\u2019s devaluation would likely lead to price hikes and weaken consumer confidence.<\/p>\n\n\n\n
Zim GBC News\u00a92024<\/p>\n","protected":false},"excerpt":{"rendered":"
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