Zimbabwe’s currency, the Zimbabwe Gold (ZiG), has stabilized, yet public confidence is low, leading to preference for the US dollar. Justice Minister Ziyambi Ziyambi stated that lack of confidence causes panic spending. The government aims to change perceptions about ZiG and enhance its acceptance, focusing on fostering trust among citizens.
Zimbabwe’s currency, the Zimbabwe Gold (ZiG), has shown signs of stabilization over the past six months; however, public confidence remains low, with many preferring the United States dollar. Justice Minister Ziyambi Ziyambi addressed this issue in Parliament, asserting that the government has injected funds into the market to assist those in need of currency for imports. Nonetheless, he noted a lack of engagement from industry and business to absorb this currency.
Mr. Ziyambi emphasized that the root of the problem lies in the citizens’ lack of confidence in their local currency. He remarked, “What is happening is that the problem is, our people have a lack of confidence in our local currency.” He further explained that people tend to panic upon receiving local currency, leading to rapid spending rather than holding it, which exacerbates the situation.
The Minister shared that big companies have begun exchanging US dollars for ZiG at the Reserve Bank, clarifying that the panic among the populace is primarily driven by fear of losing value. He spoke against the tendency to spend all bank savings immediately, advocating for a stabilizing mindset: “What is important is, let us not have a view that our money does not work.”
During the parliamentary Q&A, members raised concerns regarding the acceptance and value of the local currency. A question was posed regarding why local currency prices differ from US dollar prices in shops. In response, Mr. Ziyambi assured that the Reserve Bank is aware of these discrepancies and continues to address them. He argued against allowing business practices that might worsen the devaluation of the local currency, stating the government aims to promote the use of ZiG.
Further inquiries focused on whether the panic could be mitigated by allowing businesses to set their prices freely. The Minister dismissed such suggestions, reaffirming the government’s commitment to internalizing the use of the local currency instead of relying on foreign currencies. He concluded by stating that local acceptance, rather than international endorsement, is the primary goal for Zimbabwe’s currency.
In summary, the Zimbabwean government is actively addressing the challenges surrounding public confidence in the local currency, ZiG. Despite stabilization efforts and increased availability in the market, citizens remain hesitant to embrace their currency fully. The government aims to shift perceptions and enhance trust in ZiG through its initiatives, even as pressures from the preference for US dollars persist. As affirmed by Minister Ziyambi, fostering a mindset of confidence in the local currency is essential for its acceptance and long-term viability.
Original Source: www.thezimbabwemail.com
