Zimbabwe worried ZiG is appreciating too fast?


Zimbabwe, whose currency declined 80% this year before being abandoned, is now worried about its new unit the Zimbabwe Gold (ZiG) appreciating too fast. 

According to Bloomberg, the ZiG has advanced against the dollar since it was introduced on 5 April, spurring concerns that it will hurt exporters who shipped US$6.6 billion of gold, tobacco and other goods last year. 

Zimbabwe’s central bank is ready to intervene and curb excessive gains, Governor John Mushayavanhu said in an interview. 

He added that the central bank won’t print additional ZiG notes unless it has the reserves to back the new currency.

Several critics have written off the new currency saying it will go the way other local currencies have gone but the ZiG has appreciated by 25 points over the past two weeks.


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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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