RBZ increases ZiG liquidity to ZWG2bn
LIVINGSTONE MARUFU IN VICTORIA FALLS
The Reserve Bank of Zimbabwe (RBZ) has increased daily Zimbabwe Gold (ZiG) liquidity to ZWG2bn from ZWG1.5bn in October 2024, in a bid to improve local currency availability in the market, Business Times can report.
This was revealed by RBZ Deputy Governor, Dr. Innocent Matshe, today in Victoria Falls, amid claims of a ZiG liquidity crunch in the economy.
“There is enough ZiG liquidity ie economy. We have increased the liquidity to ZWG2bn from ZWG1.5bn in October last year in an effort to oil the market,” Dr. Matshe said.
His claims come amid mounting concerns from businesses struggling with credit access, citing the effects of the RBZ’s tight monetary policy.
Dr. Matshe said the central bank will maintain a tight liquidity stance in the foreseeable future to achieve ZiG stability.
He said good liquidity management is key in supporting economic activity.
The RBZ urged banks with surplus liquidity to trade with others experiencing shortfalls to close market inefficiencies.
Despite Dr. Matshe’s assertions, Zimbabwe National Chamber of Commerce (ZNCC) president, Tapiwa Karoro, raised concerns about the accessibility of liquidity from the banks.
“High levels of surplus liquidity in banks may indicate structural inefficiencies, such as risk aversion in lending, high interest rates, or stringent borrowing conditions that deter businesses from accessing credit,” Karoro.
