Zimbabwe’s local currency, the ZiG, has stabilized, yet citizens prefer the US dollar due to trust issues. Justice Minister Ziyambi highlighted public panic as the main problem, urging a shift in mindset to foster confidence in the currency. The government aims to strengthen the ZiG’s position through economic measures and reassurance.
Zimbabwe’s local currency, known as the Zimbabwe Gold (ZiG), has shown signs of stability over the past six months. However, citizens continue to prefer using the United States dollar due to lack of trust in the local currency. Justice Minister Ziyambi Ziyambi addressed this issue in Parliament, emphasizing that the government has injected funds into the market for necessary imports, yet businesses remain hesitant to use the local currency.
Ziyambi highlighted that the root of the problem lies in public panic: “What is happening is that the problem is, our people have lack of confidence in our local currency.” He noted that people quickly spend their local currency for fear of losing value, indicating a psychological barrier rather than a fundamental issue with the currency itself.
He explained that the ZiG was trading at 26.70 on the interbank market while fluctuating between 35 and 38 on the black market. Ziyambi urged citizens not to panic, stating, “Nothing is going to happen this time around.” He called for a mindset shift among Zimbabweans to foster confidence in their currency.
During the Parliament discussion, questions arose regarding the disparity in prices between local and foreign currency. A member expressed concern that businesses should be allowed to set prices freely to mitigate panic regarding currency depreciation. Ziyambi responded that the government aims to promote the local currency, discouraging reliance on foreign currencies.
Ziyambi also denied the expectation of foreign currencies being accepted, stating, “If you want to go to South Africa, that is the role of banks dedicated for that.” His overall message highlighted the need for confidence and trust in the ZiG, asserting that measures are being put in place to strengthen its position in the economy.
In conclusion, Zimbabwe’s local currency, the ZiG, faces challenges primarily stemming from a lack of public confidence. The government is working to stabilize the currency and increase its acceptance through economic measures and public assurance. To strengthen trust in the local currency, a change in mindset among citizens is essential, along with effective policies that ensure it holds value in markets.
Original Source: www.thezimbabwemail.com
