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ZiG Currency: Gold-Backed Or Grand Deception?

3 months agoFri, 27 Sep 2024 14:26:31 GMT
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ZiG Currency: Gold-Backed Or Grand Deception?

Prominent businessman Tawanda Nyambirai has called on the Reserve Bank of Zimbabwe (RBZ) to provide clarity regarding the sharp devaluation of the Zimbabwe Gold (ZiG) currency, especially since it is supposed to be backed by gold, which is experiencing rising prices.

On Friday, September 27, the central bank devalued the ZiG by over 40% against the US dollar, changing the exchange rate from 14.1 ZiG per dollar to 24.3 ZiG per dollar.

In a post on X, Nyambirai warned that an official devaluation without explanation about the expected relationship between the ZiG and gold prices raises significant concerns and undermines trust in the currency.

He added that this situation suggests the currency may be based on falsehoods, further questioning the Reserve Bank of Zimbabwe’s credibility in managing its currency. Wrote Nyambirai:

The ZIG is supposed to be anchored on gold. Since its introduction, the gold price has gone up significantly. The ZIG has done the opposite. An official devaluation without explaining the correlation that is supposed to exist between the ZIG and the gold prices raises more questions than answers. It completely undermines trust in the ZiG. It creates the impression that a currency was anchored on lies! How can the RBZ undermine the basis on which it launched its own currency like this?

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When RBZ Governor John Mushayavanhu launched the ZiG on April 5, 2024, he stated that the new currency would be backed by foreign currencies, gold, and precious minerals. He also announced that the central bank would implement a market-determined exchange rate.

The day before the launch, Mushayavanhu claimed that the central bank held 1.1 tonnes of solid gold, nearly 1.5 tonnes stored abroad, and $100 million in cash and precious minerals, including diamonds.

Mushavanhu claimed that if these minerals were converted into gold, they would account for an additional 0.4 tonnes.

In total, he asserted that the reserves were valued at $285 million, which he said was “more than three times the cover for the ZiG currency being issued.”

On September 27, the central bank increased its policy rate in response to sustained pressure on the ZiG currency.

The ZiG represents Zimbabwe’s sixth attempt at establishing a stable currency in 15 years, following a period of hyperinflation under former leader Robert Mugabe.

Independent economist Hapi Zengeni, quoted by Reuters, pointed out that the central bank has not clarified whether the currency will float freely or if it will continue to control the exchange rate after the devaluation.

She highlighted the complexities in Zimbabwe, where the official exchange rate does not align with the realities of the parallel market, leading to significant challenges for trade, investment, and consumer behaviour.

More: Pindula News

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123 Comments

Gora · 2 months ago
They a rigging the economy
zato · 3 months ago
zig zag Zim money going now here
Anonymous · 3 months ago
Tinoti nenhamo dza Zig
laugh emoji1
GEN-Z · 3 months ago
😅 ZiG will humble you all muchasvika pakuti eke mega
Anonymous · 3 months ago
RBZ Chief Shvavanu and Mtuli Ncube are completely brainless. And then there are all the thieves. That's why Zim is in the Long Drop again.
baba jukwa · 3 months ago
che zanu and team always bluffed saying that zig is here to stay, now can you tell me is it still willing to stay or it's about to leave
Anonymous · 3 months ago
Haa ZIG!! Wasn't it meant to move up or down in accordance with the price of gold?? Gold has appreciated since April whilst our wonderful ZIG has devalued by 50 %. Nearly 400% on the so called alternative market. What a perfornance!!!
sad emoji1
Holy Ten · 3 months ago
Feja Feja Economy hadzishande...
sad emoji1
kamukono ketsambarafuta 🤸 · 3 months ago
we need new leaders!!!!!
ndururani · 3 months ago
guys ndipeiwo mkana ndigadzirise nyika, msamhanyire kushora msati maona kt mberi zvinoita sei, Madara atadzirira zvakawands, ini ndine 40yrs, zvakumbodawo fresh blood, fresh ideas, ndipeiwo mkana ma pindulans you will thank me later 🇿🇼🤔
belafonte · 3 months ago
umm ZiG is just a hoax, there is no gold backing in that currency, marara ayo
@double 6💪 · 3 months ago
ipapo boe
Antman · 3 months ago
And an Ediot somewhere will be saying ED pfee. Or middle class economy by 2030
1
Anonymous · 3 months ago
Maybe 20030?
Fire · 3 months ago
Zig the firewood backed has destroyed human life. Aims of clever bigfish we can't make it other than to die poor, we have been deposited in terror anguish of eveil flame
shurushuru · 3 months ago
chese chinotanga naZ or china Z chakaora. Zanu, ZiG, ZRP, ZimSec, NRZ, Zimbabwe, ZPCS, ZSR, POTRAZ, UZ, the list is endless
Endless · 3 months ago
Ziyambi Ziyambi, Zambezi-no water
hoy · 3 months ago
ZIMBABWE, ZIMBABWEAN, ZIMBABWEANS
Beetroot · 3 months ago
Only POTRAZ and UZ don't start with Z. Just saying...
Rudo💅 · 3 months ago
saka muchaita sei🤷
VR 16 · 3 months ago
Material yakashandiswa pakugadzira Zig speak volumes! It shows they'not srs, haingaiti mari isina durability, twatopera kudambuka dambuka.
hoy · 3 months ago
go back to school
cde · 3 months ago
haisimari iyaa twunodambuka dambukaaa bond raitova nani ranga rakatsvukurira kunge rine twu goridhe
PVC · 3 months ago
These are textbook theories not practical
PVC · 3 months ago
Ask Mugano Ari kubrics he will tell you
Navonavo · 3 months ago
Uku kumanikidzwa kudya marutsi vamwe vachidya liver ,zvino zvaramba kushanda hakuna munhu anomanikidzaira zvinhu kuruzhinji rwevanhu zvikamufambira , mhedzisiro yacho zvinoramba kushanda nyangwe akabatira vanhu gidi hakuna kwazvinosvika ,
🤡 Sinjipi Pinjisi · 3 months ago
Now to imagine kuti Zig is going to be our sole currency soon zvorovesa hana. Raitofanira kugeina value given rising gold prices.
1
hoy · 3 months ago
hehe
Ndlera · 3 months ago
Mari yedu ichagadzikana rinhi veduwee
🙏MEMO K · 3 months ago
Tinenge tiriko
Anonymous · 3 months ago
Daidzai madzibaba vaya vetsanangudza kuti goridhe nezvimwe zvinorinda ZiG. Hatide kunzwa zvekudonhedzwa kwe Zig. No, stop it.
CityZen · 3 months ago
Its funny coz just a day ago they were boasting that they have a tight grip on the Zig at 14 to the dollar kkkk its a circus of a govenment this one. Only the Herbet Chitepo graduates believes that its a Gold Backed currency.
1
laugh emoji1
Madam boss · 3 months ago
Haaa hapana kwatirikuenda naro zig iro rakutorwara kare zvakaoma
Chibaba · 3 months ago
🤣🤣🤣🤣🤣 can someone calculate how Tshabangu was conned becoz when he was given his equavalent 1,6 million US, the rate was 1:14.
The Adjudicator · 3 months ago
The Gold is now Stale, hanzi rikuora 😂
laugh emoji1
Anonymous · 3 months ago
The bars were hollow just like Mthulis statement that he wants to fix Zimbabwes currency.
Mercy J · 3 months ago
Evining boyz👨‍⚕️👨‍⚕️👨‍⚕️ & girls👩👩👩
MS10 · 3 months ago
evening how are you? mkuonawo cy Zig ?
MS10 · 3 months ago
Where is Erudite, I'm waiting for his comment on this.
Anonymous · 3 months ago
Haa nemiwo maZimbaBveni muri right right here, Chokwadi maitoti mari iyi iri gold backed pakudii kwacho, do you remember ka story kacho ke gold rakapiwa maArab zvisina kana MP kana Minister anoziva. Zvimwe hazvitombodi kupassa ku Grade 7
Mai Mateo · 3 months ago
We are at peak of factional fights, they is high possibility of a topido force. Ndosaka vamwe vakarega kuenda ku UN General Assembly,, something deep is brewing behind the scenes
Kkkkkk. · 3 months ago
Kkkkkkk
Ghetto Prophet · 3 months ago
Dai mabhunu asir kutonga kuJoni we would just Randarise. Dai tisina kut Hichilima mutengesi patakapiwa tea kuRussia, we would Kwacharise. Dai Khama achipo pamwe ainzwa tsitsi and we would Pularise Dai tisina kumbotuka makarushu, zvimandionerepi maybe we would Merticalarise Zvino hatisina wekuchemera
laugh emoji1
Anonymous · 3 months ago
tarisai paper racho rakagadziriswa mari yepaper harina kusimba
... truth · 3 months ago
....
Va Madiro · 3 months ago
Asi nhai Tshabangu hamuna kumunyudza here makamupa ZiG @ 1usd:14.1ZiG..Mukat US$1.6 equivalence ,nhas mokwidza rate munot anosara neni
Va Madiro · 3 months ago
Ndakataura kare kt Zim economy has informalised by 95%..& yu cant ignore that what ever rubbish yu say in yo offices, ku Ghetto ndikokune vanotonga. Chionai manje flood gates have been opened. By December the rate would be @ 1usd:200ZiG
🏃 Chi baby Che Zanu 🌊 · 3 months ago
Zanu hamuizive here inonyepa kwazvo it's shame to you all that you believe liers Zanu pf tells you ndepapiko zanu payakazotaura chokwadi ndiudzeiwo
Pasi Pamera Ziso · 3 months ago
Musatambe nesu ma comrades.....
unru!ÿ · 3 months ago
zig matakanana kutamba kwepwere 🤣🤣🤣
Pasi Pamera Ziso · 3 months ago
better things could have been done than what they did. The economists are very rigid. They are too bookish, I think we need Economic Engineers not just Economists. Engineers know how to craft long lasting solutions, they think outside the box and subscribe to natural laws to improve livelihoods that is why we have buildings which are still standing yet they were built centuries ago. We need people with the same mindset, who design policies which will stand the test of time. like all competent Engineers, economists must reform and be like real Economic Engineers.
1
Anonymous · 3 months ago
If the engineers are appointed from the same pool of "interllectuals" we will still go nowhere. Mthuli may have come with good intentions, but has developed a taste for the lifestyle. That was the day he became a politician and not an economist.
Pasi Pamera Ziso · 3 months ago
I had trusted CdeED Mnangagwa to deliver a better and stable currency until this afternoon. I am very disappointed, and I can say this in his face. The so called Gold backed currency has lost value??? How??? When Gold really is gaining power on the market??? But how ma comrades??? Dai henyu makataura chokwadi from the start that nothing is backing ZiG except public confidence. You have let us down on this one. How can Mozambique and Zambia have stable currencies when a super rich country like Zimbabwe fails to establish permanent and stable bills once and for all.......
Enchanter · 3 months ago
Its surprising that you have taken note now. Economists had already predicted its demise when the vene brigade were busy celebrating its introduction.
Spe****t. · 3 months ago
Grand deception.
Gafa · 3 months ago
ahunyepe ko tipeiwo ma fixtures eku England e Premier league neyeku Laliga
Jacob Zuma · 3 months ago
Vese vanoti zig zig muri mbavha,munopa vashandi venyu marara iwayo imi muchisara nema US imboitai asi one day the baboon will miss the branch chokwadi munochiziwa
Bob · 3 months ago
Ndakakuudzai kuti hohwa haisi nyama kkkk ndanyarara hangu ini handidi manewspaper
wert · 3 months ago
Zig was backed by s. t. u. p. i. d. I. t.y
Mudhibhisi · 3 months ago
In as much as everyone wld hv wanted the ZiG to succeed,l suppose it's best for everyone to accept the painful truth that it has failed dismally.The monetary authorities shld stop these currecy experiments immediately.In the final analysis these experiments are making us poorer by each passing day.Its best to phase it out and remain with the US$.
Cde · 3 months ago
Printing machine now on, more printed ZiGs to cover for the that bought those top of range cars for donkeys pretending to be Chiefs
Minister. · 3 months ago
our gold has devalued coz of western imposed sanctions, unscrupulous businesses with a regime change agenda, but we are happy 😁 to tell you that our all weather 🌡️ friends have assured us that they will buy our gold at the highest price to restore it's value and shame our internal and external detractors.vision 2030 middle income economy!!!!😁😁😁
laugh emoji1
Scud · 3 months ago
Kwana kana kuti kurumidza kunowona chiremba wemapenzi
Political Police · 3 months ago
Can someone please rig this economy for us or Recall it. Tshabangu where art thou boy? Recall it before it's too late. Surely THE ARRESTOR WILL BE ARRESTED!!!.
laugh emoji1
Rhodesian at heart · 3 months ago
inane black leadership kkkk I laughed my lungs out when I realised that you actually chose to believe in your own duplicity kkkk black föôls
💨💤 · 3 months ago
chizita chaiko ndeche**** iwe
ZimSketch · 3 months ago
those hynas will never keep tonnes of Gold to back a currency, now everyone is counting losses. who in his/her rightful mind will accept zig ?
cde mamai · 3 months ago
zvino zvamapedza mazita ese emari dzepasi rino, yamucha gadzira gore rinouya muchaidaidza muchiti kudii
ȼøɍɍᵾᵽŧɨȼɨȺn · 3 months ago
bond was gold backed and it failed so is the zig haha 😆 kuita kuchinjana kupgadzwa chigaro chekukundikana
Heads- up · 3 months ago
gold backed and no one loves the Zii _zii Gi
Bob · 3 months ago
Zimbabwe inotongwa nekunyepa kwega kwega
unru!ÿ · 3 months ago
zig rank mhaiiii 🙆‍♂️🙆‍♀️🙆‍♂️🙆‍♂️🙆‍♀️
The Droid tabloid · 3 months ago
Saka zvima experiments zve ZiG better to abandon use zvacho se, to simply end it ipapa pa nhasi vatononoka stereki, yesterday was the best, to achieve best results
netsai · 3 months ago
zig rakutoenda kumawere iri hapn chimwe apa
1
FAZ for ZANU · 3 months ago
rip @ZIG
its becoz of sanctions of course !!!! · 3 months ago
the gold bars that were backing zig were turned into lead bars becoz of sanctions from the evil british and americans .
laugh emoji1
toilet paper #6 is dead · 3 months ago
The sh!t fake dead ZiG represents Zimbabwe’s sixth attempt at establishing a stable currency in 15 years. What is the new currency for Q4 2024 ? ZAIR (Zimbabwe Air Currency) kkkkkk
King Abs · 3 months ago
MaZimbabweans ndoska musingabudiriri ciz mnaodzikisira mari yenyu.Itai sesu maZambians mari yedu toida zvkt
Tommaso · 3 months ago
This whole issue stems from legitimacy or in this government's case a lack of it. There is no consensus in the country that Zanu won the elections fairly soo you are gonna get a lot of pushback from the citizenry when this government tries to do something because no one really wants them. Soo that's why you see when they say let's go left the citizens will say let's go right. So in conclusion our troubles will continue until every citizen is truly satisfied that the government in power is theirs and didn't get there by manipulation. It is also safe to say that the current cohort of Zanu leaders will never ever be trusted by anyone to introduce a functioning currency, an entire change in government is needed in order to escape this economic malaise.
Anonymous · 2 months ago
I fear that with the culture existing in Zimbabwe a new government would be just as corrupt and self serving as this one.
Mercy J · 3 months ago
Taura hako mrume ndakuda kuuya ikweyo.Unogara nechepapi muZambia
suks · 3 months ago
total doom
Yoyoyo · 3 months ago
😁😁Dai mvura ikanaya yakawanda gore rino tiwane yekuflusher nekuti tiri ****mà.
Yoyoyo · 3 months ago
😁😁tiri kumàmà
Anonymous · 3 months ago
the ZWG is dead. RIP the ZWG. Never achieved hero status.
Tommaso · 3 months ago
This guy is very right, what caused the sudden devaluation and what made them settle at 24.3, to summarise it all what the f@uck is this currency based on as it is now very clear that it's not gold. If this isn't handled properly by December the ZiG might well be ravaged exponentially by inflation
@Man to Man💫 · 3 months ago
ui
@Man to Man · 3 months ago
💫
PVC · 3 months ago
vaudzeiwo ndezve**** zvavari kuita we are heading towards hell
Jacob zuma · 3 months ago
Mari isingatenge petrol ne passport unoidii zig iroro svinurai mhani cde minister

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