The Reserve Bank of Zimbabwe (RBZ) has injected a cumulative US$64 million into the interbank foreign exchange market in September, Governor John Mushayavanhu announced.
This intervention aims to address the “transitory foreign currency supply and demand mismatches” that have been putting undue pressure on the foreign exchange market.
” 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, thus, exerting undue pressure on the foreign exchange market. This is, notwithstanding, the significant injection of US$50 million by the Reserve Bank in July 2024 to clear the pipeline demand for foreign currency at banks,” said Mushayavanhu
To smoothen the supply and demand imbalances, the RBZ injected US$24 million in the first two weeks of September and an additional US$40 million on September 19.
“This has resulted in a cumulative foreign currency injection totaling US$64 million for the month of September 2024 alone. The Reserve Bank’s intervention is consistent with its policy stance of ensuring that all bona-fide foreign currency applications are honoured and with its role as a participant in the foreign exchange market. The Reserve Bank is, therefore, pleased to advise that it will continue to ensure that there is seamless settlement of foreign payments in the interbank foreign exchange market,” he said
Mushayavanhu highlighted a positive trend in foreign currency receipts, noting a 13.4% increase in the first eight months of 2024 compared to the same period in 2023.
“The increase in foreign currency receipts will ensure continued timely settlement of foreign payments,” he said.
This favorable performance is expected to sustain economic activity and help stabilize the Zimbabwean dollar (ZiG).
The RBZ urged economic agents to comply with the stipulated foreign exchange framework in pricing goods and services. “The Reserve Bank will continue to entrench the stability of ZiG and ensure the smooth settlement of foreign exchange transactions,” Mushayavanhu said.
