Zimbabwe’s local currency, ZiG, has stabilized but lacks public confidence, leading citizens to favor the US dollar. Justice Minister Ziyambi emphasizes the need for trust and a change in mindset, advocating against panic spending. The government is committed to fostering the usage of the local currency and maintaining its market viability despite fluctuating perceptions of value.
Zimbabwe’s local currency, the Zimbabwe Gold (ZiG), has shown stability over the last six months; however, citizens remain reluctant to use it. Instead, they favor the United States dollar due to a pervasive lack of confidence in the local currency’s value. Justice Minister Ziyambi Ziyambi emphasized in a parliamentary session that confidence must be built among the populace concerning their currency, citing that the government has sufficient funds available for imports.
According to Minister Ziyambi, the immediate fear among citizens is causing them to rush to spend their local currency, leading to perceptions of it being less valuable. He mentioned that some major companies are now exchanging their US dollars for ZiG at the Reserve Bank, which reflects a shift in trust. He encouraged citizens to change their mindset and believe in the local currency, arguing that panic over its value is unfounded.
In response to a question regarding local currency acceptance in shops, Ziyambi acknowledged discrepancies between shop prices and the official exchange rates. He noted that the Reserve Bank has made efforts to issue local currency for import purposes, but industry participants struggle to engage due to consumer confidence issues. He reiterated that the perception of a ‘panic rate’ surrounding the currency’s value was contributing to a cycle of distrust.
Further inquiries by members of Parliament prompted Ziyambi to highlight that his ministry aims to reestablish faith in the local currency rather than entertain businesses setting their prices based on fluctuating rates. He affirmed the government’s commitment to fostering an economic environment where the local currency can thrive without the influence of foreign currencies. Ziyambi underscored that the ultimate objective is to cultivate a monetary system that is respected and utilized within Zimbabwe, independent of foreign acceptance.
In conclusion, the long-term viability of Zimbabwe’s local currency hinges on restoring public confidence. Justice Minister Ziyambi Ziyambi has indicated that the government is actively working to instill trust in the Zimbabwe Gold while maintaining its market presence. A shift in mentality among the citizens and businesses alike, along with supportive government measures, may ultimately strengthen the currency’s acceptance and usage within the country.
Original Source: www.thezimbabwemail.com
