Zimbabwe economy | Former Finance Minister labels ZiG a waste of time

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Former Finance Minister of Zimbabwe Criticizes ZiG Currency in Latest Video

In a recent video titled 'Zimbabwe economy | Former Finance Minister labels ZiG a waste of time,' the former Finance Minister of Zimbabwe raised concerns over the effectiveness and sustainability of the new ZiG currency. The video highlighted the initial positive trading performance of the ZiG currency against the US dollar, trading at 13.5 to the greenback. However, the former Zimbabwean currency RTGS had significantly devalued to 40,000 in the black market before the introduction of ZiG.

The former Finance Minister, who served during the Government of National Unity between 2009 and 2013, expressed skepticism about the long-term success of ZiG. Citing historical examples, he mentioned the extreme devaluation of the Zimbabwean dollar in the past, leading to a loss of confidence among Zimbabweans in their own currency. This loss of confidence resulted in a widespread adoption of foreign currencies, particularly the US dollar.

The video highlighted the challenges faced by informal traders and ordinary Zimbabweans when new currency transitions take place. These groups are often the hardest hit by the uncertainties and fluctuations in the value of the currency. Despite assurances from the Central Bank about the official launch of the new ZiG notes, widespread skepticism surrounds the currency, with many questioning its viability in the current economic climate.

In response to public frustrations and concerns, the current Finance Minister of Zimbabwe, M, urged patience and reassured Parliament that the issues experienced by the public were merely teething problems that would be addressed soon. However, given the lack of confidence in the Zimbabwean currency among the populace, the success of ZiG remains uncertain.

The video shed light on the delicate balance between reintroducing a local currency and rebuilding trust in the financial system among Zimbabweans. The criticisms from the former Finance Minister serve as a reminder of the challenges ahead in stabilizing the economy and restoring faith in the national currency. As Zimbabwe navigates through these turbulent economic times, the future of the ZiG currency hangs in the balance, with both optimism and skepticism shaping the public discourse

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