Reserve Bank of Zimbabwe injects US$64 million into foreign exchange market to stabilise economy
Providence Moyo
In a decisive move to stabilise Zimbabwe’s foreign exchange market, the Reserve Bank of Zimbabwe (RBZ) has injected a total of US$64 million into the interbank market throughout September 2024.
This intervention aims to address the volatility in the currency market and ensure liquidity for businesses and individuals seeking foreign exchange.
In a press statement, the RBZ highlighted that the decision was made to counteract the “transitory foreign currency supply and demand mismatches” that have caused pressure on the Zimbabwean dollar.
“Over the past weeks, the Reserve Bank witnessed a build-up in pipeline demand for foreign currency at banks, reflecting transitory foreign currency supply and demand mismatches,” read the RBZ statement.
To mitigate these imbalances, the RBZ injected US$24 million into the market in the first two weeks of September, followed by an additional US$40 million on September 19. This intervention aims to restore confidence in the market and stabilise the local currency.
“The Reserve Bank’s intervention is consistent with its policy stance of ensuring that all bona fide foreign currency applications are honored,” the statement added, emphasising the central bank’s commitment to maintaining liquidity in the market.
The RBZ also assured the public that it will closely monitor the situation and take further action if needed, ensuring the smooth settlement of foreign currency payments.
