RBZ Adjusts ZiG Exchange Rate by 42.55% Against US Dollar

By Raymond Sibanda 

Harare – In a significant move to stabilize the economy, the Reserve Bank of Zimbabwe (RBZ) has adjusted the Zimbabwe Gold (ZiG) exchange rate by 42.55% against the US dollar, marking the first official adjustment since its introduction in April this year. This development aims to reduce pressure on the domestic market and anchor the exchange rate.

Prior to the adjustment, the ZiG traded between 13.6 and 14 per US dollar. The new exchange rate stands at ZiG 24.3902 per US dollar, as announced by the RBZ in a correspondence to banks and bureau de change.

 Key Implications:

– Reduced Pressure: The adjustment is expected to ease pressure on the domestic market and stabilize currency and prices.

 – Increased Stability: By reducing liquidity chasing the limited US dollar supply, the exchange rate is likely to stabilize.

– Market Liberalization: The move responds to industry calls for further liberalization of the exchange rate regime, allowing market forces to determine prices.

This adjustment follows the RBZ’s recent efforts to stabilize the currency, including injecting US$64 million into the interbank market in September 2024 to curb further depreciation.