Story by Stanley James, Business Editor
MONETARY policy measures to contain the exchange rate are paying off as the local currency, the Zimbabwe Gold (ZiG), has recorded an over 10 percent gain to the United States Dollar (USD) since the beginning of November.
Statistics on the Reserve Bank of Zimbabwe Interbank foreign exchange market shows that the local currency had gained from ZiG 28,6829 per dollar on November 1 to ZiG 25, 5893 per greenback by close of business on Friday.
The trend which reflects an 11 percent gain against the USD is being experienced after interventions by monetary authorities in the market through injection of hard cash to support import requirements for industry and commerce as well as raising the bank rate.
Economic commentators contend that the strength of the ZiG will depend on policies to sustain the current gains.
Economic commentator, Dr Abel Mubango said, “This is entirely to the tight monetary stance that has created a gap in terms of the availability of the ZiG thereby raising its demand and emerging as an attractive currency.”
“A lot still needs to be done in terms of facilitating the stability of the domestic currency and its strength will largely depend on the commitment by monetary authorities to walk the talk on currency reforms,” noted Business Studies lecturer at the University of Zimbabwe, Dr Nyasha Kaseke.
Zimbabweans are also pinning hopes of prosperity on a stable currency to boost disposable incomes.
Treasury has hinted on measures to boost demand for the ZiG in the 2025 National Budget to be unveiled later this month.
