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ZiG Not The Answer To Zimbabwe's Economic Challenges, Says IMF

5 months agoFri, 25 Oct 2024 13:21:25 GMT
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ZiG Not The Answer To Zimbabwe's Economic Challenges, Says IMF

The International Monetary Fund (IMF) has said Zimbabwe cannot resolve its economic challenges with the gold-backed ZiG currency, which was launched in April and has already been devalued.

In an interview with Bloomberg, IMF Africa Department Director Abebe Selassie said:

There’s a tendency to see the market rate, the exchange rate, as the cause of the problems countries face.

In reality, the exchange rate is often the symptom and the root cause of exchange-rate weakness tends to be inflation.

ZiG, short for Zimbabwe Gold, represents Zimbabwe’s sixth attempt to establish a stable local currency since 2009, following previous failures due to rampant inflation.

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The ZiG was designed to restore confidence through its backing by gold and hard currency reserves, along with a central bank pledge to avoid past mistakes.

However, last month, the Reserve Bank of Zimbabwe (RBZ) devalued the ZiG by 43%, further eroding the already fragile trust Zimbabweans had in the currency. Said Selassie:

Sadly, Zimbabwe has gone through these various cycles and the root cause is really the lack of confidence, the lack of faith in monetary and fiscal policy.

It goes back to brass tacks and needing to address those root causes, and that’s the only source of closing the gap that we would be able to see.

On Friday, the ZiG was quoted at 27.68 per dollar on the official market, according to the central bank’s website.

The unofficial rate, however, ranged between 40 and 50 to the dollar, as reported by ZimPriceCheck.com.

The Zimbabwe National Statistics Agency (ZIMSTAT) announced that monthly inflation surged to 37.2% in October, up from 5.8% in the previous month, driven by the devaluation of the ZiG.

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26 Comments

Ediots · 5 months ago
IMF haisi boo
xxxx · 5 months ago
The governor wl resign soon as per promise
laugh emoji1
shellaz · 5 months ago
very true Pfuti haigadzire economy maCourts hagadzire economy now ndazviona
Sir African · 5 months ago
Soar rate us USD1 to Zig29.91 and at Pick n Pay its USD 1 to Zig 28.58
madhu · 5 months ago
These businesses are all run by Zanupf linked cartels. That is why you will never see them accept ZIG. 1. Petrol Stations 2. Private schools that we see everywhere; from Gazaland to former industrial areas. 3. Property ( Stands) 4. Private Higher Education Colleges. Zanupf has created a communist mindset that to be successful and rich in Zimbabwe; you have to be Zanupf. When you see younger and educated people joining Zanupf, dont think they are joining because they agree with Zanupfs political ideology and policies. Rather, they join so they can eat. Think Tino Machakaire.
1
👍 · 5 months ago
say it again Madhu
Anonymous · 5 months ago
There is not a single line which makes this a story.
Anonymous · 5 months ago
Where everyone is missing the trick is that money on its own has no value. We should be talking about productivity. IS Zimbabwe producing . What is it selling. We are busying buying and selling U$.
Jacob zuma · 5 months ago
Scarfmore wezidzoro msoro bhangu watitambudza mmmmm inzwaiwo tsitsi
chipoko · 5 months ago
Kusvika zvanaka totamgira ipapo
🏃Chi baby Che Zanu 🌊 · 5 months ago
imf yakamboti zig zag rinoita wani ko makuchinja sei but pafeya akuna chinobuda tichitungamirwa nemapofu clueless leaders what do you expect zanu pf policies will always fail trust me
1
zig · 5 months ago
Zanu haikwanisi kusimudza nyika yedu.Iri rezidziro rokutonga nyika necoup haisimudzi zvachose
Boyze · 5 months ago
Zig will fail to celebrate one Chrismas, worse stoll one Birthday, in good health.
👍 · 5 months ago
kkkkkkkkk sure boyze
Zim is gone like the zig · 5 months ago
There's nothing we can say Zimbabwe is no more we are a closes nation we don't know where we are going or where we came from. No farmer no future No father no family NO leader NO vision we are lost all in darkness
zesa too !! · 5 months ago
and zesa is the prince of darkness !! kkk
citizen for sure · 5 months ago
Lets wait and see what the governor has in store for us.Mind u! He reiterated with authority and confidence that Zig won't depreciate under his watch.Mayb by this time around,the governor is in hibernation.He don't wanna be the witness to the falling zig.Only God has the answer to our economic woes not these corrupt leaders who are busy lining up their pockets at the expense of the majority.
🕺🏋️‍♂️🏃‍♂️ · 5 months ago
then you'll have to wait for a lifetime time my friend
shurushuru · 5 months ago
vanhu vacho havateerere ava. misoro yakazaro ma****. havafunge
370H-55V O773H🙃 · 5 months ago
Three isn't the a special one technician on the job, to do it expediciously but we should by now if learn from the mistake you we made,and this one last lap only want us to simply abandon Z! G
flying Doc ( 3Ds) · 5 months ago
Chibby chaZanu chiripi chaitaura zvekuma...ma pakabuda Zig . I told her Zig will not last the distance ... Zig suffered a stillbirth ... Zim failed us particularly Zanu cz a lot of economic damages ...
zig stinks like **** · 5 months ago
zig st!nks, it is designed to steal proper usd currency from citizens and zim companies ... that is zigs only purpose for govt ...
2
jivaschihwehwete@gmail.com · 5 months ago
ZIG was ipmosed on us by those claim to have solutions to fix the economy and its now on free fall.
AGP2333 · 5 months ago
As Zimbos we've always shared the same sentiments but they told us that we are being unpatriotic
1

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