Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) says no one should panic or suspect any ZWG volatility anymore since adequate gold reserves and foreign currency is in place to absorb possible shocks.
The remarks come after the central bank’s move to implement a raft of measures which have since brought a modicum of stability in the markets. Even some of the shops which were now selling commodities at inflated local currency rates have since aligned with the official exchange rate.
Speaking to the media recently from Washington DC on the sidelines of the IMF and World Bank annual meetings, RBZ governor, Doctor John Mushayavanhu said all fundamentals are in place to safeguard the ZWG from any volatility risks.
He said foreign currency reserves have been building up on the back of other gold reserves.
“What that means is that we have more gold backing the currency in circulation so any exchange rate depreciation that may have occurred is temporary because what we see is a situation where if we as a central bank wanted to buy all the ZWG in circulation we could do that without the exchange rate having to move,” he said.
He said the exchange rate would have strengthened if the central bank had decided to buy back all the deposits that are in the market using the available reserves.
