Currencies

Zimbabwe Devalues Currency, Raises Interest Rates to Curb Inflation

September 30, 2024
593 1 minute read
Zimbabwe Devalues Currency, Raises Interest Rates to Curb Inflation
Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya poses for a photograph with a sample of a gold coin during its launch in Harare, Zimbabwe, July 25, 2022 | Reuters

Zimbabwe’s Reserve Bank has devalued its gold-backed currency, the ZiG, by 43% and raised the benchmark interest rate to 35% from 20% amid skepticism over the currency’s viability.

The central bank’s website showed the ZiG trading at 24.4 per U.S. dollar, down from 14 per dollar earlier in the day.

While the central bank did not explicitly confirm the devaluation, Governor John Mushayavanhu announced measures to increase exchange rate flexibility and address inflation.

Monthly inflation surged to 5.8% in September from 1.4% in August, reflecting pressures on the ZiG due to rising food import prices and declining dollar revenues from mineral exports.

The ZiG, introduced in April as a gold-backed currency to replace the Zimbabwean dollar, has faced skepticism due to the country’s history of failed local currencies.

Also Read: Zimbabwe Begins Trading in Gold Backed Currency

Previous experiments with local currencies led to hyperinflation and a shift to the U.S. dollar.

The central bank has pledged not to print more ZiG than its reserves allow but analysts warn that the currency will struggle without addressing Zimbabwe’s deeper economic issues, including limited access to global capital markets and ongoing sanctions.

Other measures announced include raising reserve requirements on deposits and capping foreign currency withdrawals.

September 30, 2024
593 1 minute read
Monitor Your Business Transaction
Photo of Lawrence Baraza

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Shelter Afrique Secures $120 Million from Arab Bank for Affordable Housing Initiatives

Shelter Afrique Secures $120 Million from Arab Bank for Affordable Housing Initiatives

14 minutes ago
IFC Issues $17 Billion Bond to Boost Rwanda’s Local Capital Market

IFC Issues $17 Billion Bond to Boost Rwanda’s Local Capital Market

7 hours ago
IFAD and EADB Join Forces to Boost Rural Development and Food Systems in East Africa

IFAD, EADB Agree to Scale Rural Development in East Africa

1 day ago
Family Bank Secures $20 Million from UK for Trade Financing

Family Bank Secures $20 Million from UK for Trade Financing

1 day ago

593 Comments

  2. I’d should check with you here. Which isn’t one thing I often do! I get pleasure from reading a post that will make people think. Additionally, thanks for permitting me to remark!

    Reply

  3. Youre so cool! I dont suppose Ive read something like this before. So nice to seek out any individual with some original thoughts on this subject. realy thank you for beginning this up. this web site is one thing that is wanted on the net, somebody with slightly originality. useful job for bringing one thing new to the web!

    Reply

  4. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.

    Reply

  6. Definitely believe that which you stated. Your favorite reason seemed to be on the net the simplest thing to be aware of. I say to you, I certainly get irked while people think about worries that they plainly don’t know about. You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks

    Reply

  7. It’s really a cool and useful piece of info. I’m satisfied that you shared this helpful information with us. Please keep us informed like this. Thanks for sharing.

    Reply

  8. I love your blog.. very nice colors & theme. Did you create this website yourself? Plz reply back as I’m looking to create my own blog and would like to know wheere u got this from. thanks

    Reply

  45. I have been exploring for a little for any high-quality articles or blog posts on this kind of area . Exploring in Yahoo I finally stumbled upon this website. Studying this information So i’m glad to show that I’ve an incredibly good uncanny feeling I came upon just what I needed. I most without a doubt will make certain to do not disregard this site and give it a glance on a constant basis.

    Reply

  59. Hi my friend! I want to say that this article is amazing, great written and come with approximately all significant infos. I would like to peer more posts like this.

    Reply

  256. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all website owners and bloggers made good content as you did, the internet will be a lot more useful than ever before.

    Reply

  389. Good post. I learn one thing tougher on completely different blogs everyday. It can at all times be stimulating to learn content material from different writers and observe a little one thing from their store. I’d desire to make use of some with the content material on my weblog whether you don’t mind. Natually I’ll give you a hyperlink in your net blog. Thanks for sharing.

    Reply

  570. What i do not understood is in truth how you’re now not actually much more well-preferred than you might be right now. You are so intelligent. You understand thus considerably in terms of this matter, produced me in my opinion believe it from numerous numerous angles. Its like women and men don’t seem to be fascinated until it is one thing to do with Girl gaga! Your own stuffs nice. Always care for it up!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button