Governor John Mushayavanhu of Zimbabwe’s Central Bank assured the public that there is no foreign exchange crisis. Recent market interventions revealed sufficient currency reserves, with only $15 million utilized from a $20 million offer. Key businesses are calling for the free-floating of the gold-backed currency, ZiG, to better respond to market dynamics.
John Mushayavanhu, the Governor of Zimbabwe’s Central Bank, has reassured the public regarding the country’s foreign exchange situation, stating that there is no current crisis. He noted that during a recent market intervention, the central bank allocated $20 million in foreign currency, of which only $15 million was utilized, indicating lower market demand than anticipated. This situation suggests that Zimbabwe possesses adequate foreign currency reserves to fulfill market requirements, alleviating concerns over potential currency shortages. Additionally, leading businesses are advocating for the government to permit the free-floating of the national currency, referred to as the gold-backed unit, ZiG.
In summary, Zimbabwe’s central bank maintains a healthy foreign currency reserve and does not face an immediate forex crisis, as highlighted by Governor Mushayavanhu. The muted demand for forex during the recent intervention underscores this stability. Furthermore, the push for the free-floating of the gold-backed currency, ZiG, reveals the evolving economic landscape and the need for adaptive monetary policies.
Original Source: iafrica.com
