Zimbabwe will stick to promises to build trust in new currency, central bank chief says
By Nyasha Chingono
HARARE, July 17 (Reuters) -Zimbabwe's government will stick to what it promised when it launched a new currency in April by ensuring it remains fully backed by reserves, the central bank governor told Reuters on Wednesday, adding that was the only way to build trust.
The new currency, called Zimbabwe Gold or ZiG for short, is the southern African country's sixth attempt at a local currency in 15 years after a bout of hyperinflation under former leader Robert Mugabe.
The last currency, the Zimdollar, fell 80% in the three months before it was scrapped, and authorities face an uphill battle to convince a sceptical population to stop transacting in foreign currencies.
"Confidence can only come with us walking the talk," Governor John Mushayavanhu said in an interview, referring to the central bank's commitment not to print money to finance government spending, which drove previous currency collapses.
He said the government had a plan until 2030 to increase use of the ZiG and build up gold and foreign exchange reserves, which stood at $285 million when the currency was launched and now exceed $380 million.
The ZiG is currently used in about 20% of local transactions, compared with 80% for foreign currencies.
"We want to gradually tilt that ratio to 70:30 by year-end or 60:40 thereafter, until we get to a situation where everybody is indifferent as to which currency they are using. This is the roadmap," Mushayavanhu said.
Although the government says use of the ZiG is rising, there are widespread reports of shortages of the currency in shops.
Mushayavanhu said enough ZiG notes had been printed to satisfy public demand and that the bank's reserve accumulation strategy could accelerate as commodity prices rise.
The central bank has been converting royalties paid by mining companies into gold and is targeting 3 tons of gold in its reserves by year-end, up from 2.5 tons in April.
Mushayavanhu said authorities expected inflation to end the year around 5%, versus an International Monetary Fund estimate of 7%.
"For the first time our numbers are almost aligned to those of the IMF," he said. "Let's embrace our new currency and make it work."
Reporting by Nyasha Chingono;
Editing by Kopano Gumbi, Alexander Winning and Mark Potter
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
