Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) injected a total US$50 million in the month of October 2024 alone in a bid to shore up the ZWG currency.
The idea to inject foreign currency on the official market is a key strategy aimed at blocking companies from invading the parallel market to meet their foreign currency needs. The use of the alternative market often fuels speculative behavior which in turn leads to exchange rates depreciation.
In a statement Friday, RBZ governor Doctor John Mushayavanhu said a substantial amount of foreign currency has so far been injected during the cycle of the month of October 2024.
“The recent market intervention has brought the cumulative participation of the RBZ in the WBWS market to US$50 million in October 2024 alone,” he said.
The central bank exchequer said the pipeline demand for this week has risen to US$25 million due to increased pressures to fund the 2024/2025 agricultural season requirements with a market clearing foreign currency sale of US$25 million recently not being exhausted since prospective buyers did not have enough ZiG liquidity to purchase available foreign currency.
“Over the last three weeks, the RBZ has also injected about US$32 million into the interbank foreign exchange market to smoothen the mismatches between supply and demand,” he added.
