Oliver Kazunga
Rumbidzayi Zinyuke
Zimbabwe has 2,5 tonnes of gold and US$300 million in cash reserves, placing it in good stead to introduce a new structured currency.
Of the gold, 1,5 tonnes is held in the Reserve Bank of
Zimbabwe (RBZ) vaults while one tonne is held offshore.
The revelation comes as the new RBZ Governor Dr John
Mushayavanhu is expected to present the much-awaited 2024 Monetary Policy
Statement today, through which the new structured currency would be introduced
to deal with inflation and other challenges that have affected the stability of
the local currency.
The new currency Is widely expected to be gold-backed.
In a first of its kind to mark a change in leadership at the
RBZ, President Mnangagwa yesterday toured the RBZ where he was shown the 1,1
tonnes of gold held by the RBZ in its vaults.
Zimbabwe also has other precious minerals such as diamonds,
which when converted to gold, are equal to 0,4 tonnes, hence the combined 2,5
tonnes of gold the RBZ is alluding to.
The President was taken on the tour of the RBZ vaults by Dr
Mushayavanhu, who was in the company of Dr John Mangudya, the outgoing central
bank chief.
Said Dr Mushayavanhu: “We also have other precious minerals
in the form of diamonds and so forth which, if converted to gold, will be equal
to 0,4 tonnes of gold.
“That makes the total of what we are holding in the vaults,
converted to gold, to 1,5 tonnes.”
The gold and cash holdings augur well for the country ahead
of the introduction of the new structured currency, whose finer details are
expected today.
Dr Mushayavanhu said the 2,5 tonnes of gold reserves and
other precious minerals are valued at US$175 million at yesterday’s price.
“Over and above that, I have also confirmed the cash
balances, nostro balances held by the central bank, and I can confirm that
there is US$100 million worth of foreign currency balances in cash,” he said.
President Mnangagwa said the purpose of his tour was to
physically see the gold reserves held by the bank, as the new governor takes
over the reins from Dr Mangudya.
In the past, the country did not keep gold reserves as it
sold all of the yellow metal and other precious minerals.
The President said previously, the outgoing governor would
just leave while his successor would simply take over without a formal handover
takeover process.
"This time around, I decided I wanted to physically see
these assets because, in the past, we did not have any reserves or commodities
reserved here.
"We sold all our gold, all our precious minerals, I
then gave instructions to the outgoing governor two years ago that we needed 10
percent of our minerals kept in solid commodities.
"If it is platinum, we will take 10 percent of platinum
and that 10 percent is converted into gold, and other minerals again, which we
cannot keep physically; we will again convert that to gold."
President Mnangagwa said Dr Mangudya gave him details of all
the assets held by the central bank.
"So, I felt that I must physically inspect what he told
me verbally as he hands over to the new governor so that when I inspect with
the new Governor, the figures must tally at the end.
"I am satisfied that the outgoing governor respected my
instructions, for the first time in Zimbabwe there is solid gold in the
vaults," said President Mnangagwa.
The President said a few months ago he travelled outside
Zimbabwe to inspect the country's gold reserves held offshore and the findings
were satisfactory.
Responding to questions from journalists, Permanent
Secretary for Finance, Economic Development and Investment Promotion, Mr George
Guvamatanga, said in addition to the reserves that the central bank indicated,
Treasury had US$300 million in reserves.
"The reserves that the Reserve Bank is talking about
are central bank reserves; they exclude what His Excellency (the President) has
also instructed us to put in reserve. As the fiscal authorities you cannot run
a Government without reserves.
"So, over and above the reserves that are in the
central bank, the instruction that came to the central bank was also given to
Treasury.
"And at least if you allow me, Your Excellency, just
for today to mention that as Government of Zimbabwe, in various banks in
Zimbabwe, not even in the central bank, and in private banks, we have got
US$300 million over and above this US$275 million," he said.
Mr Guvamatanga said Government reserves of US$300 million
can be verified with all the banks.
"So there are Government reserves, there are central
bank reserves and if we add everything, we have got more than adequate cover.
"We have got more than one month's import cover which
we are holding between the Reserve Bank and the Government of Zimbabwe.
"So, the total is more than enough for those who are
asking to say, do we have adequate reserves? If you go to the private banks,
they will show you that they are holding money on behalf of the Government,
which is just over US$300 million, which is again a reserve that we were
directed by His Excellency that you have to keep reserves," said Mr
Guvamatanga. AP
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