RBZ Makes Forex Market Interventions to Save Ailing ZiG
Harare, Zimbabwe – In a move meant to stabilise the Zimbabwean dollar (ZiG), the Reserve Bank of Zimbabwe (RBZ) has actively participated in the foreign exchange market, addressing recent mismatches in foreign currency supply and demand.
Shops Re-embrace USD as ZiG Continues to Weaken
Over the past few weeks, the RBZ observed a significant build-up in pipeline demand for foreign currency at banks, which created undue pressure on the foreign exchange market. Despite a substantial injection of US$50 million in July 2024 to clear this demand, the pressure persisted.
To smoothen these supply and demand mismatches, the RBZ injected an additional US$24 million into the interbank foreign exchange market during the first two weeks of September 2024. Furthermore, on 19 September 2024, the RBZ sold an additional US$40 million into the market, bringing the total foreign currency injection for September to US$64 million.
This intervention aligns with the RBZ's policy of honouring all bona fide foreign currency applications and its role as a key participant in the foreign exchange market.
RBZ Makes Forex Market Interventions to Save Ailing ZiG
The RBZ assures that it will continue to facilitate seamless settlement of foreign payments through the interbank market.
Additionally, the RBZ reported a 13.4% increase in foreign currency receipts for the first eight months of 2024 compared to the same period in 2023. This rise in receipts is expected to support the timely settlement of foreign payments from importers' foreign currency accounts (FCAs) and the RBZ's weekly injections from export surrender receipts, thereby sustaining economic activity.
The cumulative injection of US$64 million in September is anticipated to mop up significant liquidity in the market, further consolidating the stability of the ZiG. The RBZ urges economic agents to adhere to the stipulated foreign exchange framework in pricing goods and services.
Governor John Mushayavanhu reaffirmed the RBZ's commitment to maintaining ZiG stability and ensuring the smooth settlement of foreign exchange transactions through the interbank market.
