Zimbabwe’s central bank reports adequate forex reserves despite market concerns. Governor John Mushayavanhu mentioned a market intervention where $20 million in forex was offered, but only $15 million was purchased. Business leaders advocate for a free-float system for the gold-backed currency ZiG to enhance economic stability.
John Mushayavanhu, the Governor of Zimbabwe’s central bank, assured citizens that the nation is not experiencing a foreign exchange crisis. He noted that during a recent market intervention, the central bank made $20 million available in foreign currency, yet only $15 million was acquired. This indicates a lower demand and suggests that the country possesses adequate foreign currency reserves to satisfy market requirements, even amidst worries surrounding currency shortages.
Moreover, leading businesses in Zimbabwe have voiced their preference for authorities to permit the local currency, known as the gold-backed unit ZiG, to operate on a free-floating basis. This adjustment is seen as crucial for stabilizing the economy and enhancing monetary policy effectiveness.
In summary, Zimbabwe’s central bank, under Governor John Mushayavanhu, has affirmed the country’s foreign exchange stability despite ongoing public concerns. With adequate reserves indicated by market responses, the proposal from businesses to allow the free float of the gold-backed ZiG highlights the need for adaptive monetary policies to address economic challenges effectively.
Original Source: iafrica.com
