Zimbabwe's central bank says its tight money rules work well. The bank stopped printing extra cash, which helped build trust. Bank leader Dr Mushayavanhu told people abroad about lessons from past money troubles. He said printing money never fixes a country's problems. They decided to return to basic principles.
The ZiG currency came last April but lost some value, confusing many people. People wondered why gold-backed money would lose worth when gold prices stayed strong or went up. Dr Mushayavanhu explained that ZiG has gold support but does not directly follow gold prices. This happens because linking directly to gold prices might break international rules. The bank keeps gold reserves worth $629 million, up from $276 million last year.
These reserves can cover all ZiG money in banks, showing the currency remains stable. The central bank aims for low inflation as part of its money policy. They want to create a steady financial system that everyone can trust. The bank also made sure payments to government workers would not harm the currency value. These payments use money already moving through the system instead of newly printed cash.
The ZiG currency came last April but lost some value, confusing many people. People wondered why gold-backed money would lose worth when gold prices stayed strong or went up. Dr Mushayavanhu explained that ZiG has gold support but does not directly follow gold prices. This happens because linking directly to gold prices might break international rules. The bank keeps gold reserves worth $629 million, up from $276 million last year.
These reserves can cover all ZiG money in banks, showing the currency remains stable. The central bank aims for low inflation as part of its money policy. They want to create a steady financial system that everyone can trust. The bank also made sure payments to government workers would not harm the currency value. These payments use money already moving through the system instead of newly printed cash.
