Zimbabwe’s currency, the Zimbabwe Gold, has stabilised over the past six months but people are preferring to use the United States dollar because they have no confidence in the local currency but it is here to stay.
Responding to questions in Parliament yesterday, Justice Minister Ziyambi Ziyambi, who is Leader of Government Business in Parliament, said that there was no reason at all not to have trust in the local currency because the government had put money on the market for those who need it for imports but industry and business could not buy all the money on the market.
“What is happening is that the problem is, our people have lack of confidence in our local currency,” Ziyambi said.
“People believe that as soon as they get the local currency, they panic and want to use it immediately thinking that something might happen. That way, we feel that it is very expensive but what is happening now is, we have seen some big companies that are actually going to the Reserve Bank saying we have US dollars in exchange of ZiG.
“What we want to encourage the people is that let us not use or spend all our monies from the bank in terms of money or gold; if we want to buy the ZiG, it is not more than 23. The 23 and 33, that is what we are saying is the panic rate amongst people who think something might happen.
“Nothing is going to happen this time around, that is what we are saying. That is the panic rate amongst people who think something might happen but nothing is going to happen this time around.”
The ZiG was trading at 26.70 on the interbank market yesterday and ranged from 35 to 38 on the black market.
Asked what measures the government was taking to make sure that people do not panic, Ziyambi said that the only thing that Zimbabweans can do is to change their mindset and believe that their money works.
“What is important is, let us not have a view that our money does not work, nothing else is needed,” he said.
Q & A:
HON. S. TSHUMA: My question is directed to the Minister of Finance, Economic Development and Investment Promotion. Mr. Speaker, where we come from, in the shops, people are preferring to use the United States dollars to purchase because when they receive the local currency, they cannot use it anywhere else to buy in the same value. What is the policy with regards to ensuring that the local currency is accepted with the same value and traded in the same value in which you have received it and passed it on? For example, if the farmers are paid $100 using local currency, in big shops, prices have gone up and when one uses the United States dollar, it becomes cheaper to buy that way.
THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI): Thank you Hon. Speaker. I would want to think what Hon. Tshuma is saying and what we are saying from the Reserve Bank is different. The Reserve Bank researches in shops, the rate is around 25 and 26 and those who were very expensive were at 33. Having said that Mr. Speaker, as Government, in conjunction with the Reserve Bank, we put money on the market for anyone who wants to import. The industry cannot purchase the money that we are putting on the market. What is happening is that the problem is, our people have lack of confidence in our local currency.
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