FINANCE minister Mthuli Ncube says the country’s new currency, the Zimbabwe Gold (ZiG), will be fully-convertible and functional as it continues to circulate in the country’s economy with other currencies.
Speaking in South Africa at a two-day Zimbabwe Investment Summit that started on Thursday in Kempton Park, Ncube said the country was open for business after launching the ZiG, which is backed by gold reserves, other precious metals and foreign currency reserves.
“This (ZiG) is a structured currency which is a way of pegging a specific currency with a currency basket backed by a bundle, and is generally given to a currency when the level of the exchange rate is determined by the market… assets.
“The new currency is circulating with other currencies in Zimbabwe… at launch, the reserve asset holdings were a total of US$285 million and currency circulation was equivalent to US$90 million, which means we had more than three times the amount of the reserves that are required,” Ncube said. He added that the country wanted to ensure that the currency is not made to fail by “market manipulators”, which is why it was important for the government to ensure the currency is as fool-proof as possible.
The two-day economic drive was meant to highlight economic opportunities and potential partnerships that exist between Zimbabwe and South Africa. Its theme was “Diversify and Thrive: Exploring Investment Opportunities in Zimbabwe”.
According to the United Nations Conference on Trade and Development (UNCTAD)’s latest World Investment Report, Zimbabwe’s foreign direct investment (FDI) has grown more than five times over the past two decades. In a statement, South African businessman and chairman of African Chrome Fields (ACF), which is one of the country’s leading trading partners with Zimbabwe, Zunaid Moti revealed that there were many economic opportunities available to South Africans in Zimbabwe. Moti also took part in the discussions during the summit.
“Zimbabwe’s economy is ripe for growth and expansion, with a wealth of untapped potential and significant competitive advantages, including a rich commodities sector. Investors who enter now stand to benefit enormously over the next few decades,” he said.
On Friday, Zimbabwean Mining Deputy minister Polite Kambamura said the country is working hard to overcome some of its challenges, including infrastructure and productivity as the country possesses enough skilled human capital, which is why the country has embarked on a serious investment drive to ensure the country meets its developmental needs. — IOL
