Zimbabwe Devalues ZiG as Latest Bid for Stable Currency Founders
- ZiG devalued 43% against the dollar, central bank prices show
- Central bank also raises key interest rates to 35% from 20%
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Zimbabwe raised interest rates and devalued its gold-backed currency by 43%, following persistent weakness in the ZiG amid deep skepticism that the nation’s latest bid to create a viable local unit would succeed.
The Reserve Bank of Zimbabwe lifted the benchmark policy rate to 35% from 20%, it said in a statement on Friday. Prices on its website separately showed the ZiG, short for Zimbabwe Gold, quoted at 24.4 per dollar from 14 per dollar earlier in the day.