Zimbabwe Targets Black Market Currency Traders Over Alleged ZiG Manipulation

Ruling Party Vows to Protect New Gold-Backed Currency

by Victor Adetimilehin

Zimbabwe’s government is taking a firm stance against black market currency traders, accusing them of manipulating the exchange rate of the country’s recently introduced gold-backed currency, the ZiG.

Christopher Mutsvangwa, the Zanu-PF party’s secretary for information and publicity, addressed the issue at a press conference. He declared that the price of gold should be the sole determinant of the ZiG’s exchange rate. Mutsvangwa emphasized that security forces would be vigilant in identifying and apprehending those trading the currency at a “false value.”

“This is blatant sabotage of our economic recovery efforts,” Mutsvangwa said. “We will not tolerate any attempts to undermine the ZiG’s value. The security apparatus has been instructed to take decisive action against these criminal elements.”

Mutsvangwa underscored the inherent value of the ZiG, highlighting its direct link to Zimbabwe’s gold reserves – a finite and valuable resource. He contrasted this with the US dollar, which he described as “printed money” susceptible to inflation and external influence.

Government Criticizes Economist for Alleged Anti-ZiG Stance

In a separate development, Mutsvangwa criticized economist Professor Gift Mugano, accusing him of promoting negative views on the ZiG among students. Mutsvangwa argued that Mugano’s apparent preference for the US dollar undermines the potential of a domestic, gold-backed currency.

“Professor Mugano has a responsibility to educate students on sound financial principles,” Mutsvangwa said. “Promoting dependence on foreign currencies hinders our economic development. We need our young minds to understand the advantages of a currency backed by our resources.”

The success of the ZiG hinges on several factors. Black market activity and public confidence in the new currency are critical issues. While the government’s crackdown on currency manipulation signals a strong commitment to the ZiG’s long-term viability, the effectiveness of these measures remains to be seen.

Zimbabwe has grappled with hyperinflation and currency devaluation for years, leading to a significant decline in purchasing power and stunted economic growth. The introduction of the ZiG represents a bold attempt to stabilize the country’s financial system.

The Zimbabwean government expresses optimism that the ZiG will bring much-needed stability. Increased public trust in the ZiG and a sustained decline in black market activity are crucial for its success. If these factors fall into place, the ZiG could usher in a new era of economic prosperity for Zimbabwe.

Source: New Zimbabwe


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