Zimbabwe targets 30% de-dollarisation rate by year-end, says RBZ governor Mushayavanhu

Image- InfoZimZw 

 

Transactions in the local currency Zimbabwe Gold (ZiG) has risen to 30 percent, the Reserve Bank of Zimbabwe governor John Mushayavanhu has says.

 

According to the central bank governor ZiG now accounts for 30% of transactions, up from 15% in April.

 

The initial transaction ratio was 80-85% in US dollars and 15-20% in local currency.

Mushayavanhu said de-dollarisation target is expected at 30% of transactions in ZiG by year-end, 40% of transactions in ZiG by next year and 50% of transactions in ZiG by 2026.

 

He said increased use of ZiG has led to a surge in market liquidity as there was no increase in demand for foreign currency; the shift in product pricing ratio prompted liquidity.

 

Key points ?US$50 Million Injection:
▪️RBZ injected US$50 million into the interbank market to stabilize exchange rates.

▪️The injection was due to increased liquidity, not higher demand for foreign currency.

 

?Foreign Reserves:
RBZ has built foreign reserves covering four times the reserve money.

 

?Foreign Currency Receipts:
Nearly 10% increase in foreign currency receipts in the first half of 2024 compared to the same period in 2023.

 

Zwnews