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RBZ: "Zimbabwe Has A Robust Local Currency Backup Strategy"

RBZ:

Reserve Bank of Zimbabwe (RBZ) governor, Dr John Panonetsa Mangudya says the country has a robust local currency backup strategy.

He said contrary to the assumption that the Zimbabwe dollar is backed by gold, the country’s local currency, just like others in the world, is backed by fiat currency.

According to Investopedia, a fiat currency is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. Mangudya said:

It is not true that our currency is backed by gold. It was the United States dollar which was last backed by gold in 1971 and that has since changed. Our currency is backed by a robust fiat currency. We have in excess of one billion United States dollars of that back up and 2.4 billion United States dollars which are enough to back our currency.

Mangudya made the remarks while appearing before the Parliamentary Portfolio Committee on Defence, Home Affairs and Security.

He also said gold and other minerals are contributing 80 per cent of the country’s exports.

He added that gold and other minerals contributed five out of the six billion United States dollars the country received. 

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37 Comments

Gafa 3 weeks ago

Mhinduro dzawanda asi mubvunzo ndoumwe kureva kuti hapana mhinduro.Paita suit nenhembe USD ne Bond zvirikutengeswa.


Stallion 3 weeks ago

when things zvadhakwa vadhakisi vanengevoita sevanopenga


𝙨𝙞𝙩𝙝𝙤𝙡𝙚 3 weeks ago

𝙖𝙣𝙮𝙩𝙝𝙞𝙣𝙜 𝙯𝙖𝙣𝙪 𝙞𝙨 𝙧𝙤𝙩𝙩𝙚𝙣 𝙡𝙞𝙠𝙚 𝙯𝙖𝙣𝙪 𝙞𝙩𝙨𝙚𝙡𝙛. 𝙩𝙝𝙚 𝙥𝙚𝙤𝙥𝙡𝙚 𝙘𝙖𝙣𝙩 𝙫𝙤𝙩𝙚


bishu 3 weeks ago

1 billion Us backing up how many trillion bond and how many trillion rtgs. That statement is useless without the other side of the equation. if given then each ediot can work out real rate ye Us vs local


chati homu! ... chareva 3 weeks ago

kkk!!!! robust zvinorevei zviya, may be it's me who doesn't know what it means, nekuti pashandiswa izvi iri pacho a! zvandisiya ndaoma mate mukanwa, ...spare us this nonsense vaMangundya & give us a break.


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anonymous 3 weeks ago

these guys can't do anything right at all .one wonders the credibility of their degrees . surely how can black market be controlling the
economy.
Mafia type


Imwe Mbeu 3 weeks ago

These guys have good intentions. They're really TRYING their best. ONE of BIGGEST problems is the fact that they're ZANU-PFians


Machiavelli 3 weeks ago

Sometimes your BEST isn't enough. You just have to do what is required.

chati homu! ...chareva 3 weeks ago

if the bond is backed by Zim gvt, .. no wonder why it's failing, why not back it with something trustworthy?


REECE MADLISA 3 weeks ago

ROBUST YOKU NUKA S.HIT


Native 3 weeks ago

The bond rtgs Zim dollar or whatever the heck it's called is surely a reflection of the government


CHIKWIZO 3 weeks ago

Saka achataura zvamunoterera ndiani madiyi kumbonogara kudenga. Be consractive munhu ano dzudzuswa ne dzidziso womunanika. Zvakanaka.


Blue 💙 3 weeks ago

Nhai. Munhu wese anongorambirwa, no wonder our economy has no to little resilience.

guvhumente 3 weeks ago

it's funny that they say Zim dollar is backed up by US dollar...tatongodi taita zvema Us... bond haisi mari


Machiavelli 3 weeks ago

That's a contradiction in terms. You cannot have a robust currency with a huge trade deficit
Voodoo economics. Eish, height of Stùpįįfity

Blue 💙 3 weeks ago

Tine trade deficit. It was even wider during GNU times.

Freda 3 weeks ago

Now l understand how this currency is losing value.People do not have confidence in a zanu pf yaka mama maningi


Gweta 3 weeks ago

For those who are interested. The long arm of law has caught up with the Guptas. They have been arrested. Ndapedza, tosangana kuPomona.


Ed 3 weeks ago

As long as printer i kushanda ma bond pabonetsa anoita print


STALIN 3 weeks ago

Kunyepa


Sekuru waBona 3 weeks ago

whoever akadzidzisa this so called new looting dispensation izwi rekuti robust mwari ave naye


Mwakusha 3 weeks ago

There is no confidence in the currency 💱. Production below 50%.You're busy exporting unprocessed minerals and pocketing the proceeds. It's all a mess


Panonetsa 3 weeks ago

PANONETSA J


Nhema⚫ 3 weeks ago

*Mari yemu Zimbabwe inenge irikutotsvagawo basa nekuti haishande*
😅😅😅


😂 3 weeks ago

🤣😂🤣😂😂

sekuru waBona 3 weeks ago

which is which now🤷

the same governor once said the Central Bank was on a drive of stocking up on gold reserves to support the local currency now it's fiat?

this regime is never short of excuses

watch this space for more

panosvika August uyo nyamavhuvhu uyo pane anenge achema chete

Ngaapinde hake mukadzi waGenerari


Zimuti garwe 3 weeks ago

Kapresdent kenyu keopposition ndiko karikukuuraisai nenzara muchamam

Blue 💙 3 weeks ago

That is because the populace is never short of ways to corrode the currency. @Sekuru, do you suppose dolarization is the solution? In a country that still has a massive trade deficit. It's not sustainable K****.

Mwakusha 3 weeks ago

Arghh!!! Nonsensical


Tkt 3 weeks ago

Very soon this Zimdollar will start growing old enough to be assumed first by the insiders then outsiders as a unit of solution one that will be used as a store of value, Mira uone North & South Korea zvakango tanga kukiyana then China vs little Taiwan


🙄🙄🙄🙄 3 weeks ago

Fiat now ipo Paine Wish ne Honda Fit
uyuwo uyu?


mugabe 3 weeks ago

nonsense ****netsa


Edpfee 3 weeks ago

nonsense nyika inourawa nembavha dzayo


Inkunzi 3 weeks ago

Backed by govhurumente ummm, can the hurumenti be trusted????



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