RBZ Raises ZiG Exchange Rate to ZiG 24.39 per US Dollar Amid Market Pressures

The Reserve Bank of Zimbabwe raised the Zimbabwe Gold (ZiG) exchange rate by 42.55% to ZiG 24.39 per USD to stabilize the economy amidst growing market pressures.


The Reserve Bank of Zimbabwe (RBZ) has made its first official adjustment to the Zimbabwe Gold (ZiG) exchange rate, raising it by 42.55% to ZiG 24.39 per US dollar.

This move comes after weeks of rising open market rates and increased pressure on the local currency, with the central bank stepping in to stabilize the economy.

In a statement issued to banks and bureau de change, the RBZ announced, “To address the emerging exchange rate risks, anchor inflation expectations, and stabilize prices in the near to short term, the MPC has made several resolutions.”

The adjustment is expected to relieve domestic market pressure and help stabilize the currency, which has faced volatility since the second half of August 2024.

Before this adjustment, the ZiG had traded between 13.6 and 14 per US dollar since its introduction in April 2024.

However, the black market exchange rate has surged to around ZiG 32 per dollar, with some traders demanding even higher premiums due to demand and supply imbalances.

While the new official rate is still 23.78% lower than the parallel market rate, the RBZ believes that the move will reduce the liquidity available to chase the limited supply of US dollars, thus helping to curb inflationary pressures.

This adjustment follows other recent measures by the RBZ, including raising the Bank Policy rate from 20% to 35% and increasing statutory reserve requirements for banks, in both local and foreign currencies.

The central bank has also introduced more flexibility in the exchange rate system to manage the increasing demand for foreign currency.

By tightening liquidity and raising the exchange rate, the RBZ aims to restore economic stability and anchor inflation, which has been on the rise since mid-August.

As Zimbabwe’s currency pressures continue, the central bank’s latest intervention is seen as crucial to maintaining macroeconomic stability.