Ziyambi Says They Will Not Force ZiG On The Market But Action On The Ground Suggests Otherwise
13 May 2024
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By A Correspondent| Minister of Justice, Legal and Parliamentary Affairs, Hon Ziyambi Ziyambi has said the government will not force businesses to transact in the newly introduced local currency, Zimbabwe Gold (ZiG) but will allow market forces to determine the utilisation of the local currency.

This is however contrary to what is happening on the ground as the police are clamping down on forex traders accusing them of sabotaging the ZiG.

Addressing a ZANU PF Inter-district meeting for Zvimba District in Banket, Minister Ziyambi said the ZiG is one of the ways the country used to bust illegal economic sanctions on the country.

“We won’t go around forcing businesses to accept ZiG but we will let market forces lead people to ZiG and you will see this gradually as the government has put in place systems that there will be taxes required from business and we said this should be exclusively paid in ZiG and we will see how those businesses who are still reluctant to use our local currency pay for their tax obligations,” he said.

Minister Ziyambi said the current pricing distortions will be short-lived as market forces will slowly bring back sanity in the economy.

“I know a lot is going on as far as prices are concerned and people still have questions but everything will be stable very soon as we progress. As the government, we agreed that we will not be focussing on controlling or setting up prices but we will allow the fundamental business principles of market forces to take the leading role in bringing sanity into the economy ” he revealed.

Minister Ziyambi said the government will ensure that the Reserve Bank of Zimbabwe will focus on its core business and not get involved in quasi-fiscal activities which is the duty of the Finance Ministry.

“We have directed our Governor, Dr. John Mushayavanhu to ensure that RBZ sticks to its core business and not get entangled in the quasi-fiscal activities like what was happening in the past where the Reserve Bank was carrying some activities which are supposed to be done by the government like we saw them getting into agriculture and retail through mechanization and the Basic Commodities Supply Side Intervention (BACOSSI) that may lead into temptation of printing more money to sustain the costs,” he said.

Turning to illegal forex traders the minister said there would be no sacred cows.

“We now have a statutory instrument which will deal with the issues of illegal forex dealers and I assure you there will be no selection of the law as anyone found to be illegally dealing in forex trade will be dealt with and without favor or fear. I would like to warn those in positions of authority that no one will be spared if caught on the wrong side of the law,” he said.