John Mushayavanhu, Zimbabwe’s central bank governor, has reassured that the country does not face a foreign exchange crisis as recent market activities reveal adequate foreign currency reserves. Despite this, there is limited demand as only $15 million of the $20 million offered was purchased. Furthermore, businesses advocate for a free float of the gold-backed currency, ZiG, to better stabilize the economy.
The governor of Zimbabwe’s central bank, John Mushayavanhu, recently addressed public concerns regarding a potential foreign exchange crisis, asserting the country’s economic stability. He noted that in a recent market intervention, the central bank offered $20 million in foreign currency, although only $15 million was sold, indicating lower market demand than anticipated. This situation implies that Zimbabwe possesses adequate foreign currency reserves to fulfill market necessities despite ongoing worries about currency scarcity. In response to these challenges, major enterprises are advocating for the government to permit a free-floating exchange rate for the local gold-backed currency, known as ZiG.
To summarize, John Mushayavanhu, the central bank governor, has emphasized that Zimbabwe does not face a foreign exchange crisis, as demonstrated by the recent currency market intervention. Although demand appears limited, it suggests sufficient reserves exist. Furthermore, the call for allowing a free float of the gold-backed currency, ZiG, is gaining traction among key businesses, indicating a need for monetary reform.
Original Source: iafrica.com
