Zimbabwe’s President Emmerson Mnangagwa has vowed to reintroduce measures to protect people’s income as the country’s new currency crashes on the black market five months after it was introduced.
ZiG, short for Zimbabwe Gold, lost 43% of its value on Friday after losing about 47% on the black market.
In an address to parliament, Mnangagwa said “We note with concern the resurgence of the parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect Zimbabweans from disruptions.”
Since the devaluation, the ZiG price has fallen from 24.3902 on Friday to 25.2824 on Wednesday, while it has fallen to 32 against the dollar on the black market.
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Mnangagwa said the ZiG investment would bring “greater flexibility” and encourage foreign exchange holders to do business in the market.
ZiG was the southern African country’s sixth attempt to improve its currency in 15 years after hyperinflation under longtime leader Robert Mugabe.
The Zimbabwe Bankers Association said after a meeting with bank executives on Wednesday that the past week would lead to higher interest rates and lower confidence.
