GOVERNMENT is monitoring the activities of financial markets to come up with ways of strengthening the local currency which has been losing value on the parallel market in recent months, Vice-President Constantino Chiwenga has said.
The country has grappled with a depreciating currency over the past two decades, prompting the government to introduce the gold-backed Zimbabwe Gold (ZiG) currency early this year in a bid to stabilise the economy and mitigate inflationary pressures.
However, some supermarkets and food outlets are using parallel market exchange rates when selling in the local currency.
Speaking at the burial of national hero, (retired) Brigadier Shadreck Ndabambi at the National Heroes Acre in Harare yesterday, Chiwenga, who is the Acting President, said government was plugging gaps for businesses engaging in arbitrage activities.
“No nation will develop without sovereign control, defence and growth of its own national currency. Our government introduced the Zimbabwe Gold as our new sovereign currency. It is our responsibility as a nation to embrace and protect the new currency as a bedrock and anchor of our economic development,” he said.
“Let me assure you that government is working to promote the wider use of our local currency and is putting in place measures that will eliminate gaps that are creating arbitrage opportunities in the exchange market.
“Government will continue to monitor the operations of our financial markets and promote efforts to grow and stabilise our national currency.”
Chiwenga urged the nation to cherish the country’s independence.
“Many Zimbabweans lost their lives fighting for the independence that we enjoy and cherish today. It is, therefore, the duty and obligation of all of us who are still alive to guard our independence and sovereignty jealously,” he said.
Ndabambi passed away at his farm in Glendale last week.
He collapsed at home and was pronounced dead on arrival at Bindura General Hospital.