ZiG here to stay: VP Chiwenga

 

PHILLIMON MHLANGA IN BULAWAYO AND LIVINGSTONE MARUFU IN HARARE

Vice President Constantino Chiwenga yesterday declared that the Zimbabwe Gold (ZiG), which was introduced  early this month, is here to stay and anyone who breaks  Exchange Control regulations  will be left to rot  in prison, Business Times can report.

Speaking at the Zimbabwe International Trade Fair in Bulawayo, Vice President Chiwenga also disclosed that currency dealers should be prepared for combat.

 

“ZiG is here to stay forever,” Vice President Chiwenga declared.

He added: “The bold step that we as a government have taken symbolises  our commitment  to stabilise this economy. Don’t be a player in undermining ZiG.

“We are going to implement strict measures. Our ZiG is not like any other currency because it is firmly controlled. It will not be subject to speculation. Speculators should therefore be ready for the fight, or we will lock them in, Therefore, I upon both the public and the private sectors to fully embrace and support ZiG. We won’t give up on it because this structured currency will guarantee stability.”

He also vowed to crush gold smugglers.

 

“No one is going to take our gold outside the country. We will make sure that every gram of our gold remains here (in Zimbabwe),” Vice President Chiwenga said.

 

Vice President Chiwenga’s declaration reaffirms remarks made by  George Guvamatanga, the  permanent secretary in the Ministry of Finance, Economic Development and Investment Promotion, who hinted that Treasury intends to compel all ministries, government departments and agencies to use the newly introduced ZiG, for all statutory obligations in an attempt to  increase demand  for the new currency.

 

The new currency is backed by gold and foreign currency reserves.

 

Even though the authorities are reminding the market that ZiG is a strong currency backed by reserves of gold and foreign currency, the market is still pessimistic.

He said: “There shall be a day when fuel is fully sold in ZiG. Within that day there shall be a point when all duties and statutory obligations will be payable in ZiG not even 50%.

 

“Within that day, there shall be a point where all Ministries, government departments and agencies are going to be forced to accept local currency.

 

“In Fact we are going to force them to accept it very soon,” Guvamatanga said.

 

He added: “”We are working on a circular to all Ministries, government departments and agencies that cannot insist payments on United States dollars, they can’t insist.

 

“That is what I am going to do but it’s part of the journey towards de-dollarisation.”

 

 

According to Zimbabwe National Chamber of Commerce (ZNCC) President Mike Kamungeremu, the government must to do what it preaches.

 

“If the government could walk the talk on  the  usage of ZiG, the local currency can strengthen,” he said.

 

Dr John Mushayavanhu, the Reserve Bank of Zimbabwe governor, said ZiG will be scarce soon due to high demand.

 

 

“As I told you before, we have only US$80m worth of ZiG, come June/July, the local currency will be in short supply when companies pay their QDPs. If I were you [businesses], I would start keeping my ZiG today,” Mushayavanhu said.

Related