Central Banks
Zimbabwe Central Bank Says Intervening in FX Market Amid ZiG Slump
- Central bank uses 50% of exchange proceeds to intervene
- ZiG is trading at its lowest level against the US dollar
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Zimbabwe’s central bank said it’s “strategically intervening” in the foreign-exchange market to meet demand for dollars among lenders amid a slump in the nation’s bullion-backed currency.
The intervention is being done using 50% of the foreign-exchange proceeds that the central bank collects from exporters, Governor John Mushayavanhu said, without disclosing the amount. The Reserve Bank will continue to participate in the foreign exchange market “to ensure operational flexibility within the supply and demand dynamics,” he said Friday in an emailed statement of the mid-term monetary policy.