ZiG plunge by more than 40%, RBZ hike interest rate
STAFF WRITER
The Reserve Bank of Zimbabwe (RBZ) has devalued the local currency, the Zimbabwe Gold (ZiG), by more than 40% and hiked interest rate to 35% from 20%, Business Times can report.
The value of ZiG, which was introduced in April this year, plunged to ZWG24.3902 to the greenback on Friday from ZWG13.9987 on Thursday.
The central bank said in a statement that its Monetary Policy Committee (MPC) met on Friday and decided to allow greater exchange rate flexibility.
MPC members increased the bank’s policy rate from 20% to 35% with immediate effect.
“The MPC is convinced that the above measures will go a long way in addressing the emerging exchange rate risks, anchor the inflation expectations and stabilise prices in the near to short term,” the RBZ governor Dr John Mushayavanhu said.
