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Mnangagwa says ZiG demonstrates second Republic’s commitment for stability

By Staff Writer

President Emmerson Mnangagwa has defended the newly launched gold-backed ZiG currency saying it shows his government’s commitment to utilise national resources.

Mnangagwa was speaking at the commissioning of the Pickstone Peerless Mine Underground Mining Project in Mashonaland West Province.

His remarks follow an uproar over the new currency, with critics describing its introduction as a flop.

“The backing of our currency against our gold and strategic mineral reserves is reflective of the Second Republic’s determination to ensure that the resources of our motherland, Zimbabwe are leveraged to advance our quest to realise sustainable economic independence and sovereignty,” Mnangagwa said.

“As we build our beloved country, we must continue to be proud of our unique Zimbabwean heritage and identity, including our minerals and our currency,” he added.

The new currency ZiG replaced the ZW$ whose value was rendered worthless by runaway inflation.

From a US$1: ZW$1 exchange rate at inception in 2016, the notes had fallen beyond the US$1:ZW$25,000 rate when they were demonetised last week.

There is a general lack of confidence in the new currency with the majority already anticipating that it will perform the same way bond notes did.

But Mnangagwa described the launch as “historic and unprecedented.”

ZiG notes and coins are expected to start circulating on April 30.

Against this background, Mnangagwa said it is important to use the country’s mineral resources to achieve sustainable economic independence and sovereignty.

Meanwhile, a US$22 million investment was injected for phase one of the mining operations at Pickstone Peerless Mine’s existing two shafts.

A further US$28 million was invested under phase 2, for the installation of new underground infrastructure to allow exploration and mining from lower levels.

The forecast production of over 1 tonne of gold per annum, which translates to US$60 million, according to Mnangagwa will lead to increased gold production.

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