John Mushayavanhu, the central bank governor of Zimbabwe, asserts there is no foreign exchange crisis, citing interventions and market demand levels. The total forex offered was $20 million, but only $15 million was utilized, pointing to sufficient reserves. In response to current economic conditions, key businesses are advocating for the gold-backed currency, ZiG, to be allowed to float freely in the market.
In Zimbabwe, central bank governor John Mushayavanhu has reassured citizens that the nation is not grappling with a foreign exchange crisis. He highlighted a recent market intervention where the central bank provided $20 million in foreign exchange, though only $15 million was acquired. This scenario indicates while there are concerns about currency shortages, Zimbabwe possesses adequate foreign currency reserves to satisfy market requirements. Moreover, significant businesses are advocating for the authorities to permit a free-floating mechanism for the local currency, known as ZiG, which is backed by gold.
In summary, Zimbabwe’s central bank maintains that the country is not facing a severe foreign exchange crisis, evidenced by recent market activities. There is a push from major businesses for the establishment of a free-floating monetary system centered around the gold-backed currency, ZiG. The situation reflects ongoing economic adjustments within the nation.
Original Source: www.africa.com
