The Reserve Bank of Zimbabwe (RBZ) adjusted the ZiG exchange rate against the US dollar by 42.55%, setting the new rate at ZiG 24,3902 per US dollar. This first official adjustment since the ZiG's introduction in April aims to stabilize the local currency and curb inflation, which has been a major concern.
The widening gap between official and black market exchange rates fueled inflation and benefited informal traders. The RBZ aims to stabilize the market by aligning the official rate with market realities.
To address currency instability and inflation, the RBZ injected US$64 million into the interbank market, raised interest rates to 35%, and implemented monetary tightening measures. This includes increasing reserve requirements for banks, reducing foreign currency allowances, and further tightening monetary policy.