(Bloomberg)
—
Zimbabwe’s
new
central
bank
governor
vowed
to
restore
confidence
in
the
institution
that’s
repeatedly
failed
to
stabilize
prices
and
the
nation’s
currency.
The
Reserve
Bank
of
Zimbabwe
is
rolling
out
a
‘Back
to
Basics’
plan
that
will
initially
focus
on
consolidating
the
introduction
of
the
nation’s
new
national
currency
—
the
ZiG,
John
Mushayavanhu
said
in
a
circular
to
staff.
It
will
also
seek
a
“paradigm
shift”
in
culture
at
the
bank
to
rebuild
its
credibility
and
relevance,
he
said.
“The
market
has
lost
confidence
and
trust
in
the
credibility
and
impact
of
the
central
bank’s
policies
over
the
years,
and
this
calls
for
a
focused
re-orientation
and
change
in
the
way
we
do
things
in
pursuit
of
our
statutory
mandate,”
Mushayavanhu
said
in
the
note.
Mushayavanhu’s
first
policy
measure
after
taking
over
as
governor
was
the
introduction
of
the
ZiG
—
short
for
Zimbabwe
Gold
—
on
April
5.
The
new
unit
backed
by
gold
and
a
basket
of
foreign
currencies
is
the
southern
African
nation’s
sixth
attempt
to
create
a
functioning
local
currency
since
2008.
A
single
ZiG
is
worth
about
7
US
cents,
the
price
of
a
milligram
of
gold.
The
currency
has
strengthened
1.5%
since
its
introduction
and
traded
at
13.36
per
US
dollar
on
Tuesday,
according
to
central
bank
data.
Dubbed
by
commercial
bankers
as
“John
the
Second”
after
taking
over
from
former
Governor
John
Mangudya
last
month,
Mushayavanhu
said
other
reforms
planned
by
the
central
bank
include
“identifying
and
plugging
leakages
and
restructuring
the
Reserve
Bank’s
balance
sheet
from
short-term
pressures
likely
to
undermine
the
efficacy
of
our
policies.”
The
bank
will
also
seek
to
collate
and
disseminate
credible
data
and
appoint
a
panel
to
monitor
the
effectiveness
of
monetary
policy.
Along
with
the
new
currency,
Mushayavanhu
also
introduced
a
new
interest
rate
on
April
5
—
one
set
at
20%,
compared
with
130%
previously,
which
was
the
highest
central
bank
rate
in
the
world.
The
ZiG
replaced
the
Zimbabwean
dollar,
which
lost
four-fifths
of
its
value
against
the
greenback
this
year
before
being
replaced,
fanning
inflation
and
evoking
bitter
memories
for
citizens
of
the
days
of
hyperinflation.
Zimbabwe
stopped
publishing
local
currency
inflation
data
last
year,
after
adopting
a
measure
that
better
reflects
the
dominant
role
the
US
dollar
plays
in
the
economy.
Under
the
measure
inflation
quickened
to
a
seven-month
high
of
55.3%
in
March.