Zimbabwe’s central bank governor affirmed the country does not have a forex crisis, citing sufficient reserves. Recent market interventions showed demand for foreign currency. Businesses have requested a free-floating of the gold-backed currency, ZiG, highlighting ongoing challenges in its acceptance.
Zimbabwe’s central bank governor, John Mushayavanhu, has reassured the public about the absence of a foreign exchange crisis in the country. He highlighted that during a recent market intervention, the central bank allotted $20 million for foreign exchange, of which only $15 million was purchased. This indicates the prevailing demand in the market and suggests that Zimbabwe possesses adequate foreign currency reserves to satisfy market requirements, despite ongoing concerns regarding currency shortages.
Various key businesses have appealed to the authorities to permit the free-floating of the local currency, which is recognized as a gold-backed unit named ZiG. This appeal arises from the ongoing challenges faced by the gold-backed ZiG in gaining acceptance among the populace.
In conclusion, Zimbabwe’s central bank has indicated that the foreign exchange situation remains stable, with sufficient reserves available to meet market needs. Despite this reassurance, there is a growing call from businesses for the local currency to adopt a free-floating mechanism. The future acceptance of the gold-backed currency, ZiG, remains uncertain as it continues to garner mixed reactions from the public.
Original Source: www.africa.com
