This comes in the wake of the Reserve Bank of Zimbabwe’s
(RBZ) decision last Friday to devalue the currency by over 40%, leaving many
citizens, particularly civil servants, reeling from the loss of savings.
The drastic devaluation has rekindled painful memories of
the 2008 economic collapse when the Zimbabwean dollar disintegrated.
Delivering his State of the Nation Address (SONA) as he
officially opened the Second Session of the 10th Parliament to the joint
sitting of the National Assembly and Senate at the Parliament Building in Mt
Hampden, Wednesday, Mnangagwa reassured the nation of his administration’s
commitment to supporting the ZiG despite widespread concerns.
“The government remains committed to backing the currency
by allocating 50% of royalties towards building reserves,” Mnangagwa said.
Addressing the rising concerns over the currency’s
volatility, the president acknowledged the growth of parallel market
activities, which he attributed to speculative behaviour.
“We are concerned about the resurgence of parallel market
activities driven by speculation. We are instituting corrective measures to
protect all Zimbabweans from economic disruptions,” Mnangagwa stated. CITE
President @edmnangagwa says RBZ’s devaluation of the ZiG, allowing “greater flexibility”, will promote price discovery and encourage people holding forex to trade on the official market.
— newZWire (@newswireZW) October 2, 2024
He insists the currency has enough backing, and recent ZiG weakness is due to “speculation” pic.twitter.com/ZYiT7NPCVF
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