John Mushayavanhu, Zimbabwe’s central bank governor, affirmed that there is no forex crisis as the bank maintained adequate reserves. Despite only $15 million being purchased from $20 million offered in forex, there is a push from businesses for the local gold-backed currency, ZiG, to be allowed to float freely in the market.

The governor of Zimbabwe’s central bank, John Mushayavanhu, reassured the public regarding the country’s foreign exchange (forex) position, stating that Zimbabwe does not currently face a forex crisis. He noted that during a recent intervention in the market, the central bank made $20 million available in forex, yet only $15 million was acquired, reflecting the actual market demand. This outcome indicates that Zimbabwe possesses adequate foreign currency reserves to fulfill market requirements, notwithstanding ongoing concerns about currency shortages.

Furthermore, prominent businesses in Zimbabwe are advocating for the authorities to permit a free-float system for the local currency, known as ZiG, which is backed by gold. This call for a market-driven approach underscores the business community’s desire for a more flexible currency valuation that could potentially enhance the economic landscape.

In summary, the central bank of Zimbabwe maintains that the country is not experiencing a forex crisis, supported by sufficient currency reserves. Additionally, there is growing pressure from key businesses for the government to allow a free-float mechanism for the gold-backed ZiG currency. These developments highlight the ongoing efforts to stabilize Zimbabwe’s economy and address currency-related challenges.

Original Source: iafrica.com