Story by Stanley James, Business Editor
THE Reserve Bank of Zimbabwe (RBZ) has injected a further US$50 million towards supporting the stability of the Zimbabwe Gold currency since the beginning of this month.
In an update by the Reserve Bank of Zimbabwe, Central Bank Governor Dr John Mushayanhu said the injection of money into the foreign exchange market has been necessitated by the traditional increased demand for foreign currency in the third quarter.
The Central Bank Chief notes that requirements for the summer agricultural season and the festive period normally lead to increased demand for hard currency.
In that perspective, the central bank explained that Zimbabwe has, in the past few weeks, witnessed an increase in the willing buyer–willing seller foreign exchange market activities.
It notes that the move is a result of holders of foreign exchange, including exporters that have been selling their foreign currency in exchange for ZiG to fund their tax obligations.
With the end of the tobacco selling season, monetary authorities state that they have witnessed a slowdown in the supply of foreign exchange in the market and an increase in demand.
Meanwhile, the Central Bank has reaffirmed its commitment to a tight monetary policy and ensured that the reserve money is fully backed at all times.
