The Reserve Bank of Zimbabwe (RBZ) has, since September 1, injected $64mn into the currency market amid increased demand for the greenback which has piled pressure on the Zimbabwe Gold (ZiG) tender.

Governor John Mushayavanhu said in a release on September 19 that the allocation is in addition to $50mn the central bank released into the market in July.

“Pursuant to smoothening the supply/demand mismatches in August / September 2024,” he said, “the Reserve Bank has during the first two weeks of September 2024, injected $24mn into the interbank foreign exchange market. Furthermore, guided by the obtaining pipeline demand at banks as at 18 September 2024, the Reserve Bank has, as of today (19 September 2024) sold into the interbank market an additional $40mn. This has resulted in a cumulative foreign currency injection totalling $64mn for the month of September 2024 alone.”

The southern African nation introduced the gold-backed ZiG in early April 2024, replacing the Zimbabwe dollar that had lost value amid rising inflation.  The new currency initially held strong at around 13.5 against the greenback but has been under pressure over the past month.

Zimpricecheck, a platform which tracks currency developments in the country said on its website on September 20 that while the ZiG was formally trading at 13.96 to the dollar, it was changing hands at about 26 on the informal market. 

A number of businesses are rejecting payment in ZiG, preferring the dollar.

Meanwhile, Mushayavanhu said foreign currency receipts grew 13.4% in the first nine months of 2024 compared to the comparative period in 2023.  The increasing inflow, he noted, will make it possible for the central bank to settle foreign payments.

“Importantly, the cumulative foreign currency injection of US$64 million by the Reserve Bank in the month of September 2024 will effectively mop-up significant liquidity in the market, thus, further consolidating the stability of ZiG. Against this background, the Reserve Bank calls upon economic agents to comply with the stipulated foreign exchange framework in the pricing of goods and services,” he said.