• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Features

Zimbabwe Devalues ZiG as Latest Bid for Stable Currency Founders

10 months ago
in Features, highlights, Home, home-news, latest News
2 min read
0 0
0
99
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Zimbabwe Devalues ZiG as Latest Bid for Stable Currency Founders

Zimbabwe raised interest rates and devalued its gold-backed currency by 43%, following persistent weakness in the ZiG amid deep skepticism that the nation’s latest bid to create a viable local unit would succeed.

The Reserve Bank of Zimbabwe lifted the benchmark policy rate to 35% from 20%, it said in a statement on Friday. Prices on its website separately showed the ZiG, short for Zimbabwe Gold, quoted at 24.4 per dollar from 14 per dollar earlier in the day.

The central bank’s monetary policy committee did not explicitly confirm if it was devaluing the ZiG. But Governor John Mushayavanhu said it was taking a number of steps to combat inflation, including allowing “greater exchange rate flexibility, in line with the increased demand for foreign currency in the country.”

Monthly inflation quickened to 5.8% in September from 1.4% in August.

The ZiG, backed by the southern African nation’s gold and hard currency reserves, was introduced in early April to replace the Zimbabwean dollar, which had lost around 80% of its value since the start of the year.

The sixth attempt to stand up a local currency since 2009 was immediately met with doubt from Zimbabweans, who have bitter memories of how previous local currencies had failed.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Those experiments, undermined by the central bank printing money to fund government borrowing, stoked hyperinflation that wiped out savings and drove the economy to the US dollar, which remains the main unit of exchange.

Mushayavanhu promised that the lessons from past failures had been learned and the monetary authority would not print more ZiG than were backed by reserves. But analysts cautioned the new currency would battle until Zimbabwe’s underlying challenges are fixed.

The nation has lacked access to global capital markets since 1999 after defaulting on its debts. It’s also still trying to restore its international standing, despite qualms in western capitals about its human rights record. While the US has lifted sanctions on some state-owned firms, it’s applied them to President Emmerson Mnangagwa and other top officials.

“The devaluation obviously is just catching up to what has already happened on the market,” said Harare-based economist Farai Mutambanengwe. “What is actually required is to remove these restrictions and allow the exchange rate to be market determined so that players can set whatever rates they think are applicable.”

Pressures on the ZiG began to build in August amid rising food import prices due to an El Niño-induced drought, and as lower commodity prices dented dollar earnings for mineral exports.

Still, the central bank voiced confidence that its actions on Friday would yield results. Its other measures include raising reserve requirements on local and foreign currency deposits to 30%, from 15% and 20% respectively, and capping the amount of foreign currency an individual can take out of the country to $2,000 from $10,000.

“The MPC is convinced that the above measures will go a long way in addressing the emerging exchange rate risks,” he said. “The MPC will remain vigilant to any emerging risks to ensure continued macroeconomic stability.”

Tags: ZiGZimbabweZimbabwe Devalues ZiG as Latest Bid for Stable Currency Founders

Leave a Reply Cancel reply

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

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.