Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) member Persistence Gwanyanya has dismissed U.S.-based economist Professor Steve Hanke’s ranking of the ZWG currency as the seventh worst-performing in the world, arguing that his assessment is not supported by credible evidence.
In his weekly currency watch, Hanke said the ZiG has depreciated by 26% against the US dollar over the past year.
Speaking to NewZimbabwe.com on the sidelines of the Zimbabwe Gold Investment Conference, Gwanyanya criticised Hanke’s findings, describing the index as lacking clarity and objective justification.
“I don’t know what he (Hanke) is seeing, which the International Monetary Fund (IMF) and the World Bank, who despite having consistently criticised our policies in the past, are now concurring to say there is positive growth and stability of the ZWG currency,” he said.
The IMF has endorsed Zimbabwe’s bullion-backed currency, noting that it has helped stabilise an economy previously plagued by volatility. The Fund projects 6% economic growth, supported by improved harvests and a stable exchange rate.
The World Bank similarly forecasts Zimbabwe’s economy to rebound to 6% in 2025, attributing this to a strong agricultural season, record-high gold prices backing the ZWG, and robust remittance inflows.
Gwanyanya added that the ZWG has shown more than a year of exchange rate stability, with several private companies acknowledging improved performance in their financial results.
“Zimbabwe has, in my view, progressed significantly, given where we are coming from, and noting that our challenges are structural,” he said.
He emphasised that while authorities have stabilised the ZWG, more work remains to strengthen its usage and demand.
“I am not saying that we have arrived; we still have a lot of work to do, but we are in the positive direction.
“We need to increase the use case, the demand for our local currency, and the government is expected to do more to accelerate the efforts to increase the demand for the local currency. The budget is only coming, I think, next week. We expect measures that would support the local currency.” — NewZimbabwe
