Zimbabwe President Pledges Currency Stabilization Measures

Zimbabwean President Emmerson Mnangagwa has pledged to implement corrective measures to stabilize the nation's gold-backed currency, the Zimbabwe Gold (ZiG), which has faced significant devaluation since its introduction five months ago. The ZiG lost 43% of its value last Friday, exacerbated by a nearly 47% drop on the black market, leading to concerns over speculative activities. In response, Mnangagwa announced plans to set aside 50% of the country's royalties to build currency reserves, aiming to protect citizens' incomes and encourage official forex trading. The ZiG's devaluation was intended to provide greater trading flexibility, but further declines have prompted warnings of potential price hikes and weakened economic confidence. This current currency crisis marks Zimbabwe's sixth attempt at currency stabilization in 15 years, following a history of hyperinflation under former leader Robert Mugabe. The Reserve Bank of Zimbabwe has indicated that the recent fluctuations highlight the need for more robust financial measures to maintain economic stability.