Omega Ukama 
BUSINESS has been cheered by the launch of the country’s new currency, the Zimbabwe Gold (ZiG), as well as the raft of other measures that were taken by the central bank last week.
Captains of commerce and industry who attended Tuesday’s post-monetary policy statement (MPS) meeting in Harare said they had been “greatly encouraged” by the ZiG’s introduction and the policy positions of the new governor of the Reserve Bank of Zimbabwe, John Mushayavanhu.
The oversubscribed MPS breakfast review roundtable was organised by the country’s first independent national television station, 3Ktv — a sister operation to Zimbabwe’s number one business publication, The Financial Gazette.
Reserve Bank of Zimbabwe governor, John Mushayavanhu
The president of the Zimbabwe National Chamber of Commerce (ZNCC), Mike Kamungeremu, was among the business leaders who expressed optimism that ZiG and the RBZ’s other new measures would lift the economy.
“The currency is necessary. What is needed is to build on that. We also appreciate the efforts and the measures that have been taken to defend the ZiG. “We have always said that we need to defend our currency. We actually need to do more apart from just paying 50 percent of QPDs in the local currency. “Let our government fees be collected in our currency. That is what will really stimulate demand for the local currency,” Kamungeremu told the big gathering.
“Our country has a crisis of confidence, which is a result of past experiences, and what is then needed to do is to address that. “Part of it is having this kind of discussion where we openly engage and tell each other what’s happening and what needs to be done,” he added.
The president of the Confederation of Zimbabwe Retailers (CZR), Denford Mutashu, also applauded the launch of ZiG, adding that this was crucial for the stability of the country’s economy. “As the CZR, we welcome the monetary policy statement and we embrace the new currency ZiG.
Denford-Mutashu, Confederation of Zimbabwe Retailers president
Let’s give the currency a chance. Let’s give the governor a chance. “As retailers, we were also impressed by the monetary policy statement. We have embraced the new currency. “We will do everything that we can to support its awareness and to bring it to the people and to facilitate its flow through the banks,” Mutashu said.
Economist Nyasha Kaseke also said the new currency would address many of the country’s economic challenges. “This monetary policy statement has given us hope that the country will address one of the challenges that the economy has been facing, which is the demand for our own currency which has not been there — as people were now demanding foreign currency as a store of value.
“On the other hand, we also thank you (Mushayavanhu) for silencing the black market. I think we have already seen that in towns over the weekend. I hope they (parallel market traders) are not going to come back.
Mike Kamungeremu
“Having our own currency backed by our resources that we have in the economy is actually advantageous because the reserves that we have will determine how much we should allot in terms of printing and distribution of the currency.
“This actually gives hope and confidence, as whatever we are going to do we are basing everything in terms of what we have,” Kaseke said.
He added that a snap survey that they had conducted soon after the announcement of the launch of ZiG had showed that about 80 percent of the people interviewed welcomed the new currency. Another economist, Prosper Chitambara, said both the MPS and ZiG “ticked many boxes” and would provide a strong foundation for the country’s economic growth.
“The monetary policy statement itself provides us with renewed hope and optimism that we can break from the mistakes of the past and be able to chart a new course forward in terms of our macro-economic reform agenda.
“The governor has done a very detailed diagnostic analysis of some of the key binding constraints affecting our economy on the macro-economic front. “Like the good doctor that he is, he has also provided a very good prescription in terms of what we need to do as an economy, and as stakeholders to extricate ourselves from the demon of macro-economic instability and chronic inflation trends that the economy has been facing,” Chitambara said.
Economist Trust Chikohora said it was crucial for authorities to continue working on confidence to win the trust of the nation.
“The introduction of the Zimbabwe Gold was inevitable in the circumstances. However, for it to work, confidence is key. “We need to have a revamped monetary policy committee which will also build confidence in the public if it is revamped and strengthened to inspire more confidence,” he said.
Investment analyst Enock Rukarwa emphasised the importance of a strong implementation framework. “Moving into 2024, we believe that the announced monetary policy measures aimed at stabilising inflationary pressure and exchange rate volatility are robust, and will be even better with an effective implementation framework,” he said.
On his part, the president of the Chamber of Mines of Zimbabwe, Thomas Gono, implored authorities to stay the course — warning that any policy flip-flops would be disastrous for the new measures.
“It is our view that if these measures are fully implemented and strictly adhered to, the challenges faced by exporters, specifically on the loss of value on the liquidated export proceeds to the Reserve Bank, will be resolved,” he said.
Meanwhile, Mushayavanhu told the same gathering that ZiG will be a success that would “silence all the doubting Thomases” who were questioning it. He also implored all Zimbabweans to work together to ensure that both the new currency and the country’s economy would flourish in the interest of all citizens. “Why can we not accept this new currency that we have?
As Zimbabweans, we need to work together to make this currency stable and work. “We have suffered from hyperinflation and we sat down as RBZ and the Ministry of Finance, the parent ministry, and we came up with this structured currency which is backed by gold and other precious metals.
“Going forward, the exchange rate is going to be market determined. I did tell you that the starting rate for ZiG was 13,56, but today (Tuesday) the market determined and ZiG strengthened to 13,53. That is the way we want it,” Mushayavanhu said.
“The central bank also has enough resources to intervene if we think that the exchange rate is getting out of hand,” he added. Mushayavanhu said the issue of illegal foreign currency dealers would soon be a thing of the past. “I heard illegal forex dealers yesterday spent the day basking in the sun at Zimex Mall (in the Harare CBD). I don’t feel sorry for them because what they were doing was illegal. “In trying to make sure that we keep a tight monetary policy, we have also come up with five measures, which focus on creating demand for the local currency.
“The government will make it mandatory for companies to settle at least 50 percent of their tax obligations on quarterly payments dates (QPDs) in ZiG,” Mushayavanhu said further.
“The Bank will continue with its strict liquidity management to mitigate against shocks that cause spikes in the exchange rate. “It will ensure optimal money supply management and containment of reserve money growth within the limits of growth in reserves.
“The Bank will also maintain a tight monetary policy stance to ensure sustainability of the monetary anchor and ensure efficient management of liquidity and money supply.
“We will also discontinue all quasi-fiscal activities and adhere strictly to statutory limits on the Reserve Bank’s lending to the government,” Mushayavanhu added. He repeatedly assured the gathered delegates that the central bank would not print excess money which would cause inflation to spike.
