Zimbabwe’s Finance Chief sees ZiG currency ending market volatility
The introduction of Zimbabwe’s new currency, known at the ZiG, is expected to bring an end to stock market volatility and help restore overall price stability, Finance Minister Mthuli Ncube said.
“With the introduction of the new currency, ZiG you will notice that volatility in terms of prices, in terms of the currency itself, is going to change, that volatility should come down sharply,” Ncube said in a speech to lawmakers in Mount Hampden near Harare, the capital, on Wednesday. “This will go a long way in stabilizing all prices, including asset prices.”
The southern African country introduced the ZiG, short for Zimbabwe Goal, on April 8. Backed by gold and foreign reserves, it replaced the Zimbabwean dollar, which had shed 73% of its value since the start of the year.
Stocks on the Zimbabwe Stock Exchange have surged as investors in the southern African country sought to buy them as hedge against inflation. The annual inflation rate surged to 55.3% in March, a record seven month high, up from 47.6% in February.
