Harare, Zimbabwe – In a bold and decisive move, President Emmerson Mnangagwa has issued a stern warning to currency manipulators, vowing that the Government will implement corrective measures to protect Zimbabwe’s economy from further disruption. His announcement came during yesterday’s State of the Nation Address, where he outlined a robust plan to stabilize the nation’s currency and safeguard the livelihoods of Zimbabweans.
President Mnangagwa’s Call for Collective Action
President Mnangagwa emphasized the importance of national unity in addressing Zimbabwe’s economic challenges, urging all citizens to respect and abide by policies aimed at stabilizing the economy. His administration has already introduced significant reforms, including the Zimbabwe Gold (ZiG), which was launched in April 2024. The ZiG is backed by the country’s gold and USD reserves and is designed to curb inflation, bolster trust in the financial system, and support economic growth.
The President’s message is clear: for these reforms to succeed, Zimbabweans must unite in their efforts. He reiterated that only through collective responsibility can the nation overcome the disruptions caused by currency manipulation and speculative activities on the parallel market.
Willing-Buyer Willing-Seller Scheme to Boost Foreign Exchange Market
In an effort to curb the surge in parallel market activities, the Reserve Bank of Zimbabwe (RBZ) has introduced greater flexibility in the foreign exchange market through the willing-buyer willing-seller arrangement. This move is expected to stabilize the currency by fostering an open and competitive environment for price discovery. By encouraging more participation from foreign exchange holders, the Government hopes to increase the supply of foreign currency and restore balance to the market.
Additionally, Zimbabwe’s foreign currency inflows from exports have already grown substantially, rising from US$7 billion in 2023 to US$8 billion in 2024. This growth reflects the Government’s commitment to boosting the country’s export capacity and increasing foreign reserves.
Government Anchoring Currency to Gold for Long-Term Stability
One of the key pillars of the Government’s economic reform agenda is the introduction of the Zimbabwe Gold (ZiG). This digital currency is anchored by the country’s gold and precious metal reserves, creating a more resilient monetary system. By setting aside 50% of its royalties to build up gold reserves, the Government has taken a strategic step towards insulating the domestic currency from inflationary pressures and currency manipulation.
Monetary experts have praised this initiative as an innovative solution to Zimbabwe’s long-standing currency woes. By aligning the currency with tangible assets, the ZiG is expected to increase confidence in Zimbabwe’s financial system, attract foreign investment, and ensure long-term price stability.
Banking Sector Remains Resilient
Despite the economic turbulence caused by currency speculation, Zimbabwe’s banking sector remains stable. According to recent reports, banks have maintained strong capital and liquidity buffers, with asset quality and profitability continuing to improve. This financial strength is crucial for the country’s ongoing economic recovery and signals the resilience of Zimbabwe’s financial institutions in the face of external and internal shocks.
Decisive Action Against Currency Sabotage
President Mnangagwa’s administration has sent a clear message to market players: economic sabotage will not be tolerated. By cracking down on currency manipulators, the Government aims to protect Zimbabweans from the rising cost of living and safeguard business confidence. Stabilizing the currency will help protect the purchasing power of the most vulnerable populations, who are often hardest hit by inflation and market instability.
Path to a Prosperous Future
As Zimbabwe faces mounting economic challenges, the President remains resolute in his belief that the country can overcome these obstacles through determination and collective action. He called on all Zimbabweans to lay a strong foundation for economic prosperity, peaceful development, and freedom from undue external interference.
Through innovative monetary policies such as the Zimbabwe Gold, the willingness of its citizens to comply with Government directives, and the sound footing of the banking sector, Zimbabwe is poised to overcome its economic hurdles and move toward a more prosperous future.
Conclusion
The Government’s crackdown on currency manipulators signals a strong commitment to stabilizing Zimbabwe’s economy and safeguarding its citizens from further economic disruptions. By anchoring its currency to gold, promoting transparency in the foreign exchange market, and fostering unity among its citizens, Zimbabwe is taking critical steps to build a stable and prosperous economy.
