Zimbabwe to Establish New Gold-Backed Currency Exchange Rate Value
On May 23, 2024
By Awake-In-3D
The Reserve Bank of Zimbabwe (RBZ) has taken a significant move to solidify the Zimbabwe Gold (ZiG) as a standalone currency by applying for an International Organisation for Standardisation (ISO) code.
“The stability of the exchange rate will reflect the true value of the economy and the purchasing power of the currency, boosting domestic demand and supporting industrialisation in trade.”
Zimbabwe central bank deputy governor, Innocent Matshe
This step, announced by central bank deputy governor Innocent Matshe, aims to enhance the currency’s credibility and facilitate its integration into global financial systems.
ISO currency codes are critical in international finance, providing unique alphanumeric identifiers for currencies used in cross-border transactions.
Common examples include USD (United States Dollar), GBP (British Pound), and EUR (Euro).
These codes, established by the ISO, ensure accuracy and efficiency in global payments.
Speaking at a breakfast meeting organized by the Zimbabwe Economics Society in Harare, Matshe elaborated on the strategic importance of securing an ISO code for ZiG.
Advertisement
______________________________________________________
He emphasized that the success of ZiG hinges on a tightly managed monetary policy, strict control over money supply, and the creation of domestic demand for the currency.
The introduction of ZiG is seen as a pivotal measure to address economic instabilities, including currency fluctuations, exchange rates, and inflation, which have plagued Zimbabwe’s economy.
Matshe highlighted the necessity of having a stable base currency to support sustained economic growth and industrialization.
“It is essential to have an affordable base currency. We cannot sustain a dual currency situation indefinitely. Zimbabwe’s economy has been growing despite past instabilities, including currency fluctuations, exchange rates and inflation. However, we need to address these issues,” he remarked.
He stressed that the digital financial landscape is crucial for a modern economy, enabling long-term planning and investment.
Addressing concerns about foreign currency availability, Matshe assured that the country has sufficient reserves to meet legitimate demands, provided proper documentation is presented.
He also noted that the gradual introduction of ZiG into the economy was a deliberate strategy to avoid overwhelming the market and to mitigate the impacts of a parallel market that dominates a significant portion of economic activities.
Advertisement
______________________________________________________
“Due to the situation in our country, where a parallel market drove approximately 80% of economic activities, it was crucial to ensure that we did not supply all the new currency at once. Therefore, we limited the amount of cash injected into the economy,” he explained.
“Although challenges persist, they will evolve. Most financial institutions have received sufficient small denominations of the currency to address these issues,” he said. “The stability of the exchange rate will reflect the true value of the economy and the purchasing power of the currency, boosting domestic demand and supporting industrialisation in trade.”
In conclusion, the pursuit of an ISO code for ZiG marks a crucial step in Zimbabwe’s broader economic strategy. By establishing ZiG as a recognized and standalone currency, the RBZ aims to stabilize the economy, build trust in the new currency, and pave the way for sustainable growth and industrialization.
Contributing article: https://www.newsday.co.zw/business/article/200027220/zim-applies-for-iso-code-for-zig
=======================================
© GCR Real-Time News
Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog
Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews
Follow me on Twitter: @Real_AwakeIn3D
IF YOU ENJOYED THIS ARTICLE PLEASE HIT THE “LIKE” BUTTON AND SHARE IT!
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © Dinar Chronicles
