‘Weak’ reserves threaten currency transition

The central bank is primarily building reserves through the foreign currency surrender system from exporters and royalties and minerals paid in kind, riding on high prices, particularly gold.

ZIMBABWE’s plans to transition into a mono-currency system anchored by its own currency, the ZiG, by 2030 could be under threat from ‘weak’ foreign currency reserves to back it, analysts have said. While authorities are upbeat that forex reserves — currently at US$980 million — will reach levels sufficient to back the ZiG within the…

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