We have the reserves to support ZiG, gold is there at RBZ
Legislators doubting the existence of reserves backing the Zimbabwe Gold currency (ZWG) have been told to go and check for themselves at the Reserve Bank of Zimbabwe.
Zimbabwe introduced a new currency called Zimbabwe Gold (ZWG) on the 5th of April 2024.
According to the RBZ governor, the ZWG is a structured currency that is backed by foreign currency reserves and gold.
A structured currency is generally defined as a currency that is pegged to a specific exchange rate or currency basket and backed by a bundle of foreign exchange assets, potentially including gold.
However, Citizens Coalition for Change legislator Corban Madzivanyika is not trusting the government and proposes that there should be an audit to check the existence of the reserves.
Responding to the questions, Minister Mthuli Ncube said the reserves are there and that anyone who wants to go and check is free to go.
”Honourable (Corban) Madzivanyika also raised the issue of auditing our reserves at the Central Bank to check whether we have got adequate reserves to support our currency or not. Here I hasten to say look, Members of Parliament are free to take an inspection at the Central Bank to really check that the gold that we say is there is indeed there.
”There is no issue here. Honourable Members are free to visit the Central Bank to have a look and instead, we should make an invitation to the Committee, at least to visit and take a look. There is no problem there. In terms of audit issues, we can produce two audits per annum. There is no difficulty,” he said.
We can release audit figures for the reserves
The minister added that he has no problems releasing the audit figures for the reserves to show that they are there.
He said currently the Zimbabwe Gold is backed by reserves amounting to US$365 million.
”When we do the mid-term monetary statement halfway through the year and at the end of the year, we have to do an audit anyway. We can produce audit figures for that. What I can say as of now is that the reserves backing the currency amount to about US$365 million and that figure will be maintained right through the year without difficulty.
”We have adequate reserves to support the currency and in fact we had already started a programme through the Central Bank, where some of the reserves have been liquidated in order to fund foreign currency requirements in the market. I can give further details, but I think that I should not speak too much ahead of the Central Bank.
”Some of these things are best left to the central bank. They can articulate these things much better as it is their mandate, but I can assure you that some of the reserves are being used to support the currency and that is what they are there for.
”So, we have adequate reserves. Honourable Madzivanyika you should not be worried about whether we have enough or not,” he said.
We have the reserves to support ZiG, gold is there at RBZ
