Mnangagwa Defends Falling ZiG Amid Economic Turmoil
3 October 2024
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By A Correspondent

In a surprising move, President Emmerson Dambudzo Mnangagwa defended the beleaguered currency known as ZiG during his State of the Nation Address at the New Parliament Building on Wednesday. The currency, which has been facing significant devaluation and criticism, remains a focal point in Zimbabwe’s ongoing economic challenges.

Mnangagwa’s remarks come as the Reserve Bank of Zimbabwe (RBZ) has implemented measures allowing for greater flexibility in the currency’s value. He asserted that this strategy is intended to promote price discovery and encourage those holding foreign exchange to engage in official market transactions.

“The currency has enough backing and we know there are elements keen to disrupt the stability of our economy,” Mnangagwa stated, emphasizing his belief in the viability of the ZiG.

Despite the currency’s recent struggles, which many attribute to speculation and market uncertainty, Mnangagwa remained resolute in his defense. “RBZ’s devaluation of the ZiG will ultimately benefit our economy,” he claimed, suggesting that the adjustments are part of a broader strategy to stabilize the financial landscape.

Critics, however, have questioned the government’s handling of the currency crisis, pointing to rising inflation and a lack of public confidence in the economic system.

While Mnangagwa insists that the current challenges are a result of external forces, many citizens are left grappling with the implications of a weakening currency on their daily lives.

As Zimbabwe navigates these turbulent economic waters, the future of the ZiG and the government’s strategies to support it remain uncertain.

The President’s defense, while aimed at reassuring the public, highlights the ongoing tension between government policies and economic realities.