Zimbabwean President Emmerson Mnangagwa has pledged to implement measures to stabilize the nation’s gold-backed currency, the ZiG, following its sharp devaluation on the black market. The currency, which was introduced five months ago, dropped 43% in value last Friday after it lost nearly 47% on the parallel market. Speaking to parliament, Mnangagwa expressed concern over speculative activities and announced corrective steps to safeguard citizens’ incomes. He noted that the devaluation allows for “greater flexibility” in trading foreign exchange on official markets. Mnangagwa also announced that the government plans to support the currency by setting aside 50% of the country’s royalties to build reserves. The ZiG is Zimbabwe’s sixth attempt at stabilizing its currency in 15 years after years of hyperinflation under former leader Robert Mugabe.
SOURCE: REUTERS
Zimbabwe’s President Promises to Halt Currency Slide
