HARARE, Oct. 2 (Xinhua) — Zimbabwean President Emmerson Mnangagwa on Wednesday underscored the importance of maintaining a stable currency to foster macroeconomic stability in the country.
“Currency stabilization is at the core of macroeconomic stability. The adoption of the Zimbabwe Gold (ZiG) in April 2024, was an important step toward stabilizing the domestic currency anchored by our gold and precious metal reserves,” Mnangagwa said in an address in the new parliament building. “It remains the duty of all of us to respect and abide by measures and instruments intended to maintain economic stability and tame inflation.”
Mnangagwa’s remarks came after the Reserve Bank of Zimbabwe, the country’s central bank, last week devalued the local currency by 42.6 percent against the U.S. dollar, in its first official adjustment of the exchange rate since the new currency launch in April.
The adjustment followed renewed pressure on the exchange rate in recent weeks, as reflected in the widening parallel market rates, which now exceed 30 ZiG units per U.S. dollar.
The introduction of ZiG marked the latest in a series of attempts by the country’s monetary authorities to establish a stable currency in over a decade.
Mnangagwa expressed concern over the resurgence of parallel market activities driven by speculative tendencies, stressing that corrective measures are being instituted to protect all Zimbabweans from economic disruptions.
