Story by Stanley James, Business Editor
ZIMBABWE’S price and exchange rate stability remains on course after the Reserve Bank of Zimbabwe (RBZ) injected more than US$1.5 billion into the foreign exchange market since April 2024 to shore up the Zimbabwe Gold (ZiG).
The central bank’s intervention, channelled through the willing buyer, willing seller foreign exchange market, is aimed at reinforcing the domestic currency and meeting industry foreign currency requirements.
Authorities say the measures have ended the era of sharp daily exchange rate swings, replacing volatility with greater predictability in the currency market.
Officials and industry players attribute the current stability to sustained foreign exchange support, which has boosted demand for the ZiG and increased its electronic usage to over 40 percent.
Business leaders cite stable prices, improved competitiveness in the export sector and enhanced financial sector stability as key gains from the monetary interventions.
Economist Jimmy Pscillos said the stronger currency has laid a foundation for sustained growth.
“It is time we focus on the economic growth trajectory sustained by the strong Zimbabwe Gold. Remember where we are coming from and what has happened. This shows a remarkable currency growth trajectory to such an extent that we as an industry are now feeling the positive effects of a strong ZiG that has ushered in a platform for overall growth,” he said.
The interventions have also significantly narrowed the gap between the parallel market and the official exchange rate.
Economist Dr Zack Murerwa said continued discipline will be critical to safeguarding the gains.
“The central bank needs to further focus on walking the talk in sustaining the country’s financial markets that are experiencing stable conditions, with assurances in the Monetary Policy Statement of a tighter monetary supply system. This augurs well for a stable ZiG,” he said.
As price and exchange rate stability persist, authorities say maintaining policy consistency and meeting set monetary targets will be key to consolidating the gains achieved under the current framework.
