Tafadzwa Nyikadzino

The Permanent Secretary of the Ministry of Finance,  George Guvamatanga said the country’s gold and cash reserves are more than enough to back the Zimbabwean Dollar during President Emmerson Mnangagwa’s tour at the Reserve Bank of Zimbabwe today.

The development comes at a time when the Central Bank is expected to deliver a monetary policy tomorrow where various reports have alleged that a new “structured currency”  will be announced.

The Zimbabwean Dollar is currently losing its value on a daily basis against the United States Dollar which is used jointly for local transactions.  As of today, the local currency was trading at Zw$1:Us$35 000 at the black market.

The newly appointed Governor of the Reserve Bank of Zimbabwe, Dr John Mushayavanhu revealed that  the country has 1,5 tonnes worth of gold reserves, 1,1 tonnes which are in solid gold form, while the remainder is in other mineral forms.

“The gold in the vaults 1,1 tonnes, 1,5 tonnes converted we have other gold offshore. So, in total in the form of gold reform, cash balance is US$100 million in cash,” he said.

Addressing journalists after touring the Central Bank, President Mnangagwa said his visit was mainly to see the assets that the country has.

“With RBZ we just normally walk in, but this time I decided I want to physically see the assets, because in the past we did not have any reserves of commodities, we sold all. I then gave instructions to the new governors that 10 percent of our minerals be kept in solid commodity, that is 10 percent of platinum or whatever mineral we are covering that to gold. We have been doing that for 18 months, I felt I must inspect physically, and I’m satisfied that the outgoing governor reserved my instructions because for the first time we have solid gold. A few months ago, I went outside, and I inspected the country’s gold reserves there, I won’t say where,’ President Mnangagwa said.

Mr Guvamatanga told President Mnangagwa that the country’s reserves are enough to back the Zimbabwean Dollar. He added that banks are holding US$300 million as the country’s reserves.

“As the Government of Zimbabwe, in various banks of Zimbabwe we have US$300 million US over and above the other reserves which can be verified, so if we add everything, we have more than enough,” he said.

The Central Bank is expected to deliver a monetary policy statement tomorrow.