Latest news with #Zig
Business Insider
9 hours ago
- Business
- Business Insider
Zimbabwe's gold-backed currency faces credibility test despite central bank optimism
Zimbabwe's gold-backed currency, the Zimbabwe Gold (ZiG), continues to face skepticism from both the public and financial analysts, despite central bank assurances of stability and full reserve backing. Zimbabwe's gold-backed currency, the Zimbabwe Gold (ZiG), faces public and financial analyst skepticism Past economic issues, including hyperinflation and currency shifts, continue to erode public trust in new currency measures. The share of transactions using the ZiG has increased, though many citizens still rely on the U.S. dollar due to past economic turmoil. The Reserve Bank of Zimbabwe (RBZ) claims the currency is supported by more than 100% in reserves, including 2.5 tons of gold and $100 million in foreign assets. The ZiG, Zimbabwe's sixth currency attempt in 15 years, was introduced to curb inflation and restore confidence in the local monetary system. Yet many citizens still rely on the U.S. dollar for daily transactions, with past economic turmoil continuing to erode trust. Although the International Monetary Fund has expressed support for the ZiG and its potential to become a full national currency, uptake remains limited. Government efforts to boost usage have yet to overcome deep-rooted doubts among both consumers and investors. According to Reuters, the RBZ kept its benchmark interest rate at 35% on Monday, citing exchange rate stability. It also reported total reserves of $701 million and noted that the share of transactions using the ZiG jumped to 43% in May, up from 26% in April when the currency was launched. The Zig's credibility issues Last year, Zimbabwe introduced a new gold-backed currency known as the ZiG, or Zimbabwe Gold, in a bid to curb longstanding currency instability and decades of hyperinflation. The Zimbabwe Gold (ZiG), has however, continued to face a significant trust gap, as evidenced by persistent premiums in the parallel market, where it trades below the official rate. This skepticism persists despite the central bank's assertion that the ZiG is now backed by more than 100% in reserves, comprising gold and foreign currency. The country's tumultuous monetary history, marked by hyperinflation and abrupt currency shifts, has contributed to this lack of confidence. While responding to Reuters, Reserve Bank Governor John Mushayavanhu reaffirmed the central bank's commitment to the ZiG, stating: ' ZiG is our national currency, and we are committed to ensuring its success by maintaining all the fundamental characteristics of sound money, including its function as a reliable store of value. ' He added, ' The Reserve Bank has learned from previous currency failures that maintaining an optimal money supply and ensuring monetary stability is vital. ' Finance Minister Mthuli Ncube remains optimistic, expressing confidence that monetary reforms will pave the way for $2.6 billion in bridge financing by mid-2026. However, global investors are cautious, with Jetro Siekkinen of LGT Capital Partners stating, " We wouldn't invest in Zimbabwe at the current stages. The country needs to have a lot more development before we would consider it," as reported by Reuters. Analysts have also raised concerns about Zimbabwe's overall reserve position, noting that the country holds just 0.8 months of import cover, well below the International Monetary Fund's three-month benchmark. Other factors include past policy failures, doubts over gold reserve transparency, limited convertibility, and persistent inflation which all fuel skepticism. A strong black-market presence and continued reliance on U.S. dollars further weaken confidence.
eNCA
2 days ago
- Business
- eNCA
Vendors and businesses reject Zig-only idea
HARARE - Small businesses in Zimbabwe say being restricted to using the Zimbabwean gold currency would destroy their livelihoods. The International Monetary Fund has suggested the sole use of the Zig in order to stabilise the economy. The currency replaced the Zimbabwe dollar in April last year. But the rand and the US dollar remain legal and popular currencies. Local and foreign supermarket chains have already closed shops in Zimbabwe, citing Zig instability.
Yahoo
21-02-2025
- Science
- Yahoo
Beware of ‘intergalactic committees'—small, focused teams are the best way to get work done
You've been on an intergalactic committee before—you just didn't know what to call it. An intergalactic committee looks like a meeting or 'task force' with dozens of people—multiples of delegates from each function of a big organization who are brought in to represent small distinctions relating to their discipline. While a few participants meaningfully contribute, tangential ideas seem to suck all the oxygen out of the room, hampering efforts to address the important challenge at hand. How does an intergalactic committee form? The forward button on a meeting invite. The idea that there's a correlation between the priority of a project, the titles of those involved, and the number of people enlisted. The well-meaning premise that one's colleague might not be able to bring every detail we possess, or that everyone needs to be on the committee to stay in the loop. I remember years ago when we were building a new product within AT&T. We used the code name Project Zig, initially because the product was meant to be disruptive—we'll zig when they think we're going to zag. We held a kick-off meeting where two members from the project team walked through the highlights. More than 50 people from all areas of the business joined the meeting, driven largely by FOMO (fear of missing out). While we appreciated the interest, the sheer volume and types of niche questions were not productive. When my small, dedicated Zig working group peeled away, it felt like we were flying—and 'zig' came to represent the speed and productivity we experienced with the smaller squad. Jeff Bezos has the two-pizza rule, which can be further simplified to a one-pizza rule: Keep the group small enough that everyone gets a slice. Eight attendees or less. Small teams encourage equal participation, and the heightened transparency leads people to be more selfless in their contributions. It's hard to hide self-serving motives or organizational territorialism in a small circle. Each department should have only one empowered representative. Team members should be chosen based on alignment with the mission, not only their job title. Once the specialized delegates are in the room, they should have a broad remit and equal latitude to ensure that truly new approaches are fair game. A clear leader is essential to harnessing the collective brain power of a group. While everyone gets a voice, not everyone should have a vote. There should be only one decision-maker, singularly focused on bringing the outcome back to the mission. That individual needs to consider all inputs and clearly articulate the decision and path forward. The team should engage in healthy, respectful debates, but all team members must be supportive once the direction is set. Clear communication on why a decision was made, and what is expected as a result, is critical to ensure alignment and speed of action across a broader organization. We should steer clear of intergalactic committees as we tackle challenges, assemble teams, strive for swift impact, and evolve as leaders. Of course, the essence of a high-performing team transcends merely avoiding pitfalls; it is fundamentally about envisioning and reaching our desired objectives. The key lies in establishing clear priorities that align with the mission and empowering team members who are accountable for delivering on that mission. When we unleash a small, empowered team to address our most formidable challenges, we pave the way for remarkable achievements. The opinions expressed in commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune. Read more: Jeff Bezos reveals his formula for running the perfect meetings to weed out those 'who pretend to have done the reading' Jack Dorsey tells Block employees Tuesday is a 'no meeting day.' Here's why that lifts the spirits of 'makers' Nvidia CEO Jensen Huang has a no one-on-one meetings rule for his 55 direct reports Meetings are a productivity killer—and 3 in every 4 are totally ineffective, according to a new wide-ranging study This story was originally featured on
