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The Reserve Bank of Zimbabwe (RBZ) has released the latest prices for gold coins and digital tokens as well as official exchange rate figures.
The gold coins and digital tokens were introduced as a store of value in an attempt to curb the local currency’s continued fall.
For long, the local currency has been performing badly against major convertible currencies especially the American dollar.
While the authorities maintain that the official rate is at ZiG13.50 to the green currency, the black market rate is reportedly over 30 in some places.
Meanwhile, economic analyst Persistence Gwanyaya says currency depreciation will be managed by injection of forex by RBZ to meet increasing requirements by importers.
He adds that the RBZ has so far injected US$190m in the interbank market & it is clear that there is need to inject more, pointing out that timing is very important so that the country ride on ZiG’s goodwill.
Gwanyaya points out that whilst changes in gold prices is expected be a key driver of demand for ZiG given the confidence deficit in local currency, there are many factors affecting its demand eg expectations, money supply & its velocity among others.
Renowned American economic analyst Professor Steve Hanke says the country’s local currency Zimbabwe Gold (ZiG) has depreciated by forty-nine percent since January this year.
In his latest update, he says this makes it the third weakest currency world.
“ZIMWatch🇿🇼: The ZiG has depreciated by ~49% against the USD since Jan 1st.
“That makes the ZiG the 3RD WORST currency IN THE WORLD on this week’s Hanke’s #CurrencyWatchlist.
“Pres. Mnangagwa‘s DE-DOLLARIZATION = DELUSIONAL,” he says.
Zwnews
