John Mushayavanhu, the governor of Zimbabwe’s central bank, has announced that the institution may utilize its foreign currency reserves to safeguard the Zimbabwe Gold (zig) from significant market fluctuations. He also committed to upholding a stringent monetary policy aimed at ensuring stable inflation and exchange rates. The zig, which is a gold-backed currency, has seen a decrease in value relative to the U.S. dollar. In response, the central bank indicated that it could step into the foreign exchange market to stabilize the currency and reinforce its intended monetary policy approach. Since the introduction of the zig, the bank’s foreign currency reserves, including gold, have witnessed an increase.
