RBZ injects US$64 million to save ZiG from free fa...

RBZ injects US$64 million to save ZiG from free fall

Staff Reporter

The Reserve Bank of Zimbabwe has injected US$64 million into the interbank foreign exchange market to stabilise the country's currency, ZiG, which has been under pressure due to rising dollar demand and money supply growth.

This move follows a US$50 million injection in July, bringing the total to US$114 million.

RBZ Governor John Mushayavanhu said the intervention aims to address temporary supply and demand mismatches and ensure seamless settlement of foreign payments.

The bank has also reported a 13.4% increase in foreign currency receipts in the first eight months of 2024, compared to the same period in 2023.

"The Reserve Bank's intervention is consistent with its policy stance of ensuring that all bona-fide foreign currency applications are honoured and with its role as a participant in the foreign exchange market. The Reserve Bank is, therefore, pleased to advise that it will continue to ensure that there is seamless settlement of foreign payments in the interbank foreign exchange market," Mushayavanhu said.

"The Reserve Bank is also pleased to advise that foreign currency receipts increased by 13.4% in the first eight months of 2024, compared to the same period in 2023. The increase in foreign currency receipts will ensure continued timely settlement of foreign payments from importers' foreign currency accounts and the Reserve Bank's weekly foreign currency injections from the export surrender receipts. In addition, the favourable performance in foreign currency receipts will continue to sustain economic activity."

The ZiG, which is backed by gold and foreign currency reserves, has been depreciating on the black market due to rising US dollar demand and money supply growth.