Dr. John Mushayavanhu, the Governor of the Reserve Bank of Zimbabwe, emphasized the nation’s commitment to leveraging its own currency for fostering robust economic growth. He assured that the supply of Zimbabwe Gold (ZiG) would always correlate with increases in gold and cash reserves, with annual audits ensuring transparency and accountability.
Furthermore, discussions with stakeholders are underway to potentially introduce fuel sales in ZiG, aiming to stimulate its circulation and adoption. Dr. Mushayavanhu made these statements during his appearance before Parliament’s Portfolio Committee, where he unveiled the ZiG currency backed primarily by the country’s gold and foreign currency reserves.
“We are actively exploring avenues to facilitate fuel transactions in ZiG,” Dr. Mushayavanhu stated. “Initiating with taxes and expanding to encompass various commodities, we are progressively advancing towards fuel sales in ZiG. It’s crucial for economic vitality that transactions occur in our local currency, with a gradual target of 15% initially, aiming for significant increases by 2026.”
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Dr. Mushayavanhu underscored the importance of annual audits conducted by registered auditors, ensuring adherence to policy directives and maintaining transparency. Responding to queries from legislators, he expressed openness to increasing audit frequency if deemed necessary.
Highlighting the commitment to prudent monetary practices, Dr. Mushayavanhu reassured that the Central Bank would only increase money supply in alignment with reserves and economic indicators, thereby averting inflationary pressures.
Presently, Zimbabwe has US$80 million worth of ZiG in circulation, supported by US$100 million in cash and US$185 million in gold reserves. The government’s directive mandating companies to pay 50% of their taxes in ZiG aims to bolster its widespread use across the economy.
Dr. Mushayavanhu also indicated plans to align the Intermediate Money Transfer Tax between US dollar and ZiG transactions, aiming for parity. Additionally, collaborative efforts between monetary authorities and the Treasury seek to eliminate provisions contributing to parallel market rates, with forthcoming announcements expected from the Treasury.
