Finance Minister Mthuli Ncube Assures Zimbabweans of Stable Currency Reserves Amid Recent Volatility

Finance Minister Mthuli Ncube Reassures Zimbabweans Amid Fears of Currency Instability

Finance Minister Mthuli Ncube has reassured citizens that the country is well-positioned to avoid another wave of Zimbabwean dollar (ZWG) volatility despite recent concerns.

In an interview on the sidelines of the Women’s Prosperity Conference, Minister Mthuli Ncube stated that the nation’s reserves are sufficient to cover all ZWG deposits in the banking sector. He asserted that measures have been implemented to stabilize the economy following a period of rapid exchange rate depreciation.

Also Read: Dumping ZiG for US Dollar Will Destroy Zimbabwe’s Future, Deputy Minister Warns

Treasury Books Balanced: Mthuli Ncube Assures Zimbabweans of Stable Currency Reserves

Mthuli Ncube assured Zimbabweans that the country’s finances are in good shape, with reserves currently sufficient to cover all ZWG deposits in local banks.

“At the current exchange rate of US$1:ZWG25, we have enough reserves to match the ZWG10 billion in local currency deposits. The value of our reserves amounts to US$425 million, which at the current exchange rate, also equals ZWG10 billion,” he explained.

He stressed that there was no reason for the exchange rate to come under further pressure.

“We want to assure Zimbabweans that the measures we’ve put in place, including raising interest rates and reserve requirements, are designed to remove speculative demand for foreign currency and strengthen our local currency,” Ncube added

Furthermore, Finance Minister Ncube stated that the situation has since improved following the introduction of several measures aimed at restoring stability.

“Prices of basic commodities have cooled off, and we have matched the balances between the local currency and the US dollar,” he said

Also Read: Government Sets Aside Money for Civil Servants’ Salary Increase Following ZiG Devaluation

Deputy Minister Speaks Against Abandoning Local Currency

Meanwhile, Deputy Finance Minister David Mnangagwa addressed the idea of abandoning the Zimbabwean dollar in favour of using the US dollar exclusively. Speaking during a Parliament session on Wednesday, Mnangagwa warned that such a move could have serious long-term consequences for the economy.

“Dumping the Zimbabwe Gold (ZiG) currency might seem like a quick fix, but it is not a sustainable solution,” David Mnangagwa said.

He argued that relying solely on the US dollar could result in increased unemployment and further economic decline.

David Mnangagwa emphasized that maintaining the local currency is crucial for the country’s long-term economic health.

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