By 
By Ross Moyo
The exercise crackdown led by the Reserve Bank of Zimbabwe (RBZ) central bank’s financial intelligence unit (fiu) and Zimbabwe Republic Police (ZRP) to defend the local currency Zimbabwe Gold (ZiG) from speculation on the parallel market will continue.
This was revealed by Zimbabwean Finance Minister, Professor Mthuli Ncube yesterday as he announced new measures to steer and create demand for the nation’s bullion-backed currency, including ordering government services be paid for in the unit.
Professor Ncube presented these plans in his mid-term budget statement before lawmakers in Mount Hampden, 11 miles northeast of the capital, Harare vowing to offer fresh support to the Zimbabwe Gold, which he praised for subduing “inflationary pressures in the economy.”
This comes after Consumer prices were unchanged in June from the prior month, after falling 2.4% in May.
“This exercise will continue until there is sanity and stability in the financial sector,” Ncube said.
Minister Ncube said those using and engaging in illegal foreign-exchange rates and activities, numbering over 500 traders and individuals have been fined for refusing to accept the ZiG.
Zig replaced the Zimbabwean dollar on April 5, after it lost 80% of its value against the US dollar this year, fueling an inflation spiral. The ZiG is backed by cash and mineral reserves worth $370 million and is the nation’s sixth attempt at having a functioning local currency in 15 years.
Ncube’s 2024 budget was reconfigured to ZiG from the old currency and now stands at, “87.9 billion ZiG ($6.4 billion),” according to the Fiscal Authority biggest boss.
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