Gold-Backed ZiG has Struggled to Win People over in Zimbabwe

Zimbabwe’s central bank governor, John Mushayavanhu, assured the public that the country does not face a foreign exchange (forex) crisis. He explained that during a recent market intervention, the central bank offered $20 million in forex, but only $15 million was purchased, indicating the level of demand in the market. This suggests that Zimbabwe has sufficient foreign currency reserves to meet market needs, despite concerns over currency shortages. Key businesses have urged the authorities to allow the free-float of the local currency, a gold-backed unit called ZiG.

Source: Bloomberg