Business Reporter
LISTED retailer, OK Zimbabwe says the newly introduced Zimbabwe Gold (ZWG) currency has gone a long way in easing inflation and yielding economic stability.
On April 5, the Reserve Bank of Zimbabwe introduced a new “structured currency” ZiG to tackle the ongoing economic crisis in the country. The new currency is backed by gold, and other precious minerals, and will circulate alongside other foreign currencies.
The ZiG currency is currently trading at a rate of around 13:80 against US$1 although premiums are higher on the alternative market.
Presenting a trading update for the period ended June 30 2024, OK Zimbabwe group company secretary, Margaret Munyuru hailed the local unit’s inception.
“The introduction of the new Zimbabwe Gold currency (ZWG) brought with it a measure of stability. This resulted in year-on-year inflation declining from 57.48% in April 2024 to 3.76% by 30 June 2024. The fiscal and monetary measures being implemented by the government are highly commendable.
“The group remains committed to delivering value to its shareholders by focusing on executing fair pricing, expanding market presence and optimizing operational efficiencies while prioritizing customer satisfaction for long-term sustainability,” she said.
Munyuru however bemoaned the shortage of foreign currency in the formal banking sector and continued to put pressure on the exchange rate and some stakeholders began to insist on US$ payments for products and services.
Authorities have since allowed the sale of goods and services in US$ to allow companies to generate foreign currency internally and augment the already existing support systems.
