In a significant monetary policy shift, the Zimbabwean government has devalued its gold-backed currency, the Zimbabwe Gold (ZiG), by 44% against the US dollar.
This move comes after mounting pressure from retailers and ongoing economic challenges in the country. The new official exchange rate stands at 25 ZiG per US dollar, a sharp increase from the previous rate of 14 ZiG per dollar.
On Friday, September 27, 2024, Zimbabwe sold its gold-backed currency to banks at a rate 44% lower than the prevailing market rate against the dollar.
This effective devaluation was confirmed by four treasury dealers and later corroborated by Lawrence Nyazema, the President of the Bankers Association of Zimbabwe.
Nyazema stated, “We are expecting a statement before end of day,” indicating that an official announcement from the government was imminent.
-Zimpricecheck
