By McGeorge Mbare
The Reserve Bank of Zimbabwe has vowed to stabilize the ZiG exchange rate amid the turbulence that has hit the local unit where it’s trading as much as 1:40 to the dollar on the alternative market popularly referred to as the black market.
The RBZ governor John Mushayavanhu has acknowledged how the ZWG has been impacted and he assured the public of stability expectation.
“The way we see it, is that the depreciation was a once off …The impact has been felt yes, but going forward there should be stabilization, This assurance is very strong, as the Central Bank we have control on money supply and you have my assurance that the deposits were they are at 10.7billion will not grow,” said the Governor.
Despite, the RBZ Governor‘s assurances the situation in the market remains volatile as the public has lost much of the faith which has been building in the ZWG. Economists, politicians and the public alike have been questioning the credibility of the RBZ highlighting that the Apex Bank has previously failed to stick to its promises.
Exiled former ZANU PF Politburo and Minister Professor Jonathan Moyo who was very positive about the ZWG at its introduction has joined the skeptics on the RBZ and its policies.
“After all is said and done, okusalayo is that to say ZiG is backed by gold should necessarily and rationally mean that its value as a currency is linked to the value of gold. There anything is mumbo jumbo whose outcome can be needless confusion” Moyo wrote on his X account.
As the debate on whether the RBZ can be trusted or not, some optimist believe the RBZ should be given the benefit of doubt and not be judged harshly based on the fall of the currency which happened recently. However what is clear is a lot need still need to be done seeing that we are in the traditional FOREX lean season in the country.