ZIMBABWE’S central bank has disclosed a notable gold reserve of 2.5 tons, setting the stage for the introduction of a gold-backed currency amid ongoing economic reforms. The announcement, made on Thursday, underscores the government’s efforts to stabilise the country’s monetary system.
John Mushayakarara, the newly appointed governor of the Reserve Bank of Zimbabwe, conveyed optimism regarding the bank’s financial health during a meeting with President Emmerson Mnangagwa in Harare. Mushayakarara, addressing Mnangagwa as ‘H.E.’ for his excellency, highlighted the robustness of the bank’s balance sheet, emphasizing the value of gold and other mineral reserves estimated at $175 million.
‘I have taken over the control of the central bank, and one of the things I had to do upon taking over was to verify the assets that the central bank holds,’ Mushayakarara stated, underscoring the significance of the asset verification process. ‘This morning I showed H.E. the gold that is in the vaults, and I can confirm that we have in the vaults at the central bank 1.1 tons of gold.’
He continued, ‘We also have other minerals – diamonds and so forth. If converted to gold, [they would] be equal to 0.4 ton of gold. We have other gold which is held offshore. It is worth 1 ton of gold.’
On Friday, Mushayakarara is slated to officially announce the introduction of a gold-backed currency, aiming to replace the depreciated local dollar. The current exchange rate stands at around 30,000 to one US dollar, and unlike the South African rand, the local currency does not circulate widely in neighbouring countries.
President Mnangagwa, commenting on the country’s readiness for the new currency, emphasised, ‘Let me assure you that my government does not work on rumours. We work on facts. Rumours can continue flying, but you have been able to come here and see facts for yourselves.’
The announcement has sparked lively discussions on social media platforms, with some expressing scepticism and others voicing support for the initiative. Pedzisayi Sakupwanya, a businessman aligned with the ruling Zanu-PF party, contributed to the discourse by revealing, ‘I delivered 13 tons of gold to the central bank last year.’
Zimbabwe’s history of currency instability, marked by the introduction and subsequent devaluation of multiple currencies since independence in 1980, underscores the significance of the impending currency rollout. The public’s reception and the currency’s performance against major currencies will be closely monitored in the coming weeks.
, conveyed optimism regarding the bank’s financial health during a meeting with President Emmerson Mnangagwa in Harare. Mushayakarara, addressing Mnangagwa as ‘H.E.’ for his excellency, highlighted the robustness of the bank’s balance sheet, emphasising the value of gold and other mineral reserves estimated at $175 million.
‘I have taken over the control of the central bank, and one of the things I had to do upon taking over was to verify the assets that the central bank holds,’ Mushayakarara stated, underscoring the significance of the asset verification process. ‘This morning I showed H.E. the gold that is in the vaults, and I can confirm that we have in the vaults at the central bank 1.1 tons of gold.’
He continued, ‘We also have other minerals – diamonds and so forth. If converted to gold, [they would] be equal to 0.4 ton of gold. We have other gold which is held offshore. It is worth 1 ton of gold.’
On Friday, Mushayakarara is slated to officially announce the introduction of a gold-backed currency, aiming to replace the depreciated local dollar. The current exchange rate stands at around 30,000 to one US dollar, and unlike the South African rand, the local currency does not circulate widely in neighbouring countries.
President Mnangagwa, commenting on the country’s readiness for the new currency, emphasised, ‘Let me assure you that my government does not work on rumours. We work on facts. Rumours can continue flying, but you have been able to come here and see facts for yourselves.’
The announcement has sparked lively discussions on social media platforms, with some expressing scepticism and others voicing support for the initiative. Pedzisayi Sakupwanya, a businessman aligned with the ruling Zanu-PF party, contributed to the discourse by revealing, ‘I delivered 13 tons of gold to the central bank last year.’
Zimbabwe’s history of currency instability, marked by the introduction and subsequent devaluation of multiple currencies since independence in 1980, underscores the significance of the impending currency rollout. The public’s reception and the currency’s performance against major currencies will be closely monitored in the coming weeks.
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