Story by Stanley James, Business Editor
The Reserve Bank of Zimbabwe (RBZ) has injected US$50 million into the interbank foreign exchange market to ease demand for import requirements and consolidate the stability of the Zimbabwe Gold ( ZiG) currency.
The move is in line with the features of a structured currency where international reserves are released into the market to sustain foreign currency demand by industry and commerce.
Reserve Bank of Zimbabwe Governor, Dr John Mushayavanhu confirmed the immediate injection of US$50 million into the interbank foreign exchange market, saying it was necessitated by a rise in demand for foreign currency by industry and commerce to source inputs or raw materials.
“Since April 2024, the Reserve Bank has been participating in the interbank foreign exchange market to supplement liquidity under the willing buyer-willing seller trading arrangements. The participation of the Reserve Bank in the interbank market has helped to complement the supply of the foreign currency to authorised dealers to meet demand by the economic agents, in recent weeks the Reserve Bank has witnessed a build-up in pipeline demand for foreign currency at banks thereby putting undue pressure in the foreign exchange market,” he said.
The Reserve Bank has expressed satisfaction with the general acceptance of ZiG by the market and reaffirmed its commitment to currency and exchange rate stability in the economy.
“The country continues to generate significant foreign currency to meet import requirements as evidenced by an almost 10 per cent increase in foreign currency receipts during the first half of 2024 compared to the same period in 2023, reflecting the significant foreign currency receipts the bulk of foreign payments are currently being met by balances in foreign currency accounts,” he added.
The ZiG is backed by gold and other precious minerals, as well as foreign currency reserves.
