Zimbabwe’s currency, the ZiG, has stabilized but suffers from public distrust in favor of the US dollar. Justice Minister Ziyambi emphasizes the need for citizens to regain confidence in their currency, citing market dynamics and government efforts. Parliamentary discussions reflect various concerns about currency policy and the need to promote local currency usage.
The stability of Zimbabwe’s currency, the Zimbabwe Gold (ZiG), has improved over the last six months; however, citizens remain skeptical, often preferring the United States dollar. Justice Minister Ziyambi Ziyambi affirmed in Parliament that the lack of confidence in local currency is the primary issue. He asserted that the government has provided sufficient funds for imports but emphasized that businesses are not utilizing these resources effectively.
Ziyambi explained that the prevalent panic among citizens leads them to quickly spend their local currency, fearing unforeseen events. He noted, “People believe that as soon as they get the local currency, they panic and want to use it immediately thinking that something might happen.” Additionally, he indicated that major companies are increasingly exchanging US dollars for ZiG at the Reserve Bank, demonstrating an element of market dynamism.
In response to parliamentary inquiries regarding potential solutions to bolster confidence in the local currency, Ziyambi stated that the responsibility lies with the citizens to alter their mindset about the value of the ZiG, insisting that it functions adequately. He articulated that the government is not focused on removing foreign currencies but rather on promoting the use of the local currency.
Several members of Parliament raised the concern that allowing businesses more flexibility to set prices could mitigate panic over currency devaluation. Ziyambi rejected this notion, preferring to reinforce the use of local currency rather than acquiescing to foreign dollar transactions. He reiterated that having confidence in the local currency is a crucial step towards stabilizing its value. Furthermore, Ziyambi clarified that the government aims to cultivate a currency that will be accepted domestically, rather than seeking international acceptance.
The discourse on Zimbabwe’s currency reflects a profound lack of public confidence despite government efforts to stabilize the Zimbabwe Gold. Justice Minister Ziyambi underscores the importance of changing public perceptions to bolster the local currency’s viability. Ongoing discussions in Parliament reveal a desire for solutions that prioritize the use of local currency while cautious of foreign exchange pressures. The overarching emphasis remains on cultivating trust in the ZiG to foster a stable economy.
Original Source: www.thezimbabwemail.com
