According to the governor, John Mushayavanhu, the cautious approach is aimed at preventing a potential collapse of the currency.
“We are not going to increase the amount of money in circulation until it’s backed by adequate reserves,” he told delegates at a meeting. “The president instructed me not to print money without reserves.”
The southern African nation sought guidance from the World Bank to develop the structured currency, a concept policymakers initially lacked familiarity with.
The southern African nation sought guidance from the World Bank to develop the structured currency, a concept policymakers initially lacked familiarity with.
“We got a consultant from the World Bank on the structured currency, a lot of things came from the World Bank,” Mushayavanhu said. The authorities also consulted local business groups including the Confederation of Zimbabwe Industries and the Zimbabwe Chamber of Mines, he said.
Mushayavanhu stated that the central bank aims to enhance its gold reserves by utilizing royalty payments from miners, with a target of adding approximately 2 tons of bullion annually.
