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Tuesday, June 18, 2024

Firming ZiG bolsters price stability

Story by Stanley James, Business Editor

ZIMBABWE has experienced price stability in local currency transactions since April, driven by the Zimbabwe Gold (ZiG) firming against major trading currencies.

The first price data of the ZiG released by the Zimbabwe National Statistics Agency (ZIMSTAT) shows that the rate at which prices changed between April when it was launched, and May is at minus 2,4 percent.

The trend confirms that the local currency has maintained its stronghold regarding purchasing power parity, with consumers expecting the stability enjoyed in ZiG-denominated prices since April to be maintained.

While confirming the ZiG price stability mode, the Reserve Bank of Zimbabwe has assured Zimbabweans of a strong domestic currency, “If you take a look closer at my monetary policy I alluded to the fact that ZiG will be backed by gold, precious minerals and foreign currency reserves are the pillars of the currency and I have even said that come June this year the domestic currency will even be stronger as corporates are being required to pay 50 percent of their Quarterly Payment Dates in local currency.”

The local currency has also received the backing of industry to ensure a competitive production base.

The central bank is further convinced that price stability is key to achieving an upper-middle-income society by 2030.

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