RBZ devalues ZiG

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The Reserve Bank of Zimbabwe (RBZ) has devalued the Zimbabwe Gold (ZiG) allowing the local currency to fall to 24.3 to the US dollar.

Despite the devaluation, the local currency is trading at a weaker rate on the parallel market.

This marks the first official adjustment of the ZiG since its introduction.

According to the authorities, this is expected to reduce pressure on the domestic and help stabilise the currency and prices.

The development will reduce the liquidity available in the market to chase the limited supply of US dollars in a development expected to help anchor the exchange rate.

Before the devaluation, the local currency traded between ZiG 13,6 and 14 per US dollar since ZiG was launched in April this year.

Zwnews