Connect with us

Hi, what are you looking for?

LOCAL NEWS

Zimbabwe holds rates steady at 20 percent as new ZiG notes hit the streets

Zimbabwe holds rates steady at 20 percent as new ZiG notes hit the streets

HARARE – Zimbabwe’s central bank kept its benchmark interest rate unchanged at its first policy meeting since unveiling the gold-backed currency, the ZiG.

Governor John Mushayavanhu said in a statement that the monetary policy committee had held the rate at 20 percent after receiving positive market reaction to the new currency.

According to Mushayavanhu, the MPC expects currency reforms to help provide “stability, certainty and predictability in the exchange rate and inflation”.

The MPC also set the interest rate corridor at between 11 percent to 25 percent, Mushayavanhu said.

The southern African nation introduced ZiG, short for Zimbabwe Gold on 5 April.

Advertisement. Scroll to continue reading.

The currency is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank. On the same day, the central bank reset interest rates from 130 percent, a world record, to 20 percent. Meanwhile, banks in Harare began distributing the freshly minted notes and coins on Tuesday morning.

Concerns have been raised about the role of forex dealers in perpetuating financial instability, prompting monetary authorities to impose weekly cash withdrawal limits. Individuals are restricted to withdrawing up to ZiG 3,000, while companies are limited to ZiG 30,000.

For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +27 82 836 5828

Click to comment

Leave a Reply

Your email address will not be published.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

Catch More Updates Below

LOCAL NEWS

Zimbabwe is getting ready to host the 44th Southern African Development Community (SADC) Summit of Heads of State and Government on August 17-18, 2024....

BUSINESS NEWS

THE microfinance sector is feeling optimistic about the future, thanks to the introduction of the Zimbabwe Gold (ZiG) currency. ZiG is backed by gold...

BUSINESS NEWS

The Platinum Group Metals (PGMs) industry continued to be a vital pillar of Zimbabwe’s economy, contributing US$2.1 billion in export revenue last year. Despite...

BUSINESS NEWS

Trade between Zimbabwe and the Democratic Republic of Congo (DRC) is poised for significant growth, offering numerous opportunities for Zimbabwean exporters to supply products...

LOCAL NEWS

HARARE — Zimbabwe has asked gold miners across the country to ramp up output to support the ZiG currency launched last month, according to...

LOCAL NEWS

Former top model and Zim Gossip Model Agency founder, Mercy Mushaninga, was convicted of defrauding five models of a combined $10,200 over a failed...

LOCAL NEWS

Approximately 1,300 White Zimbabwean commercial farmers, whose land was seized in the early 2000s, have signed up for compensation, which will be issued in...

LOCAL NEWS

The Minister of Information Communication Technology, Postal and Courier Services, Tatenda Mavetera, announced that the government is waiting for the Postal and Telecommunications Regulatory...

Advertisement
error: Content is protected !!