By Ziyah News Reporter
The Reserve Bank of Zimbabwe (RBZ) has injected a total of US$64 million into the interbank foreign exchange market throughout September 2024.
This action comes in response to a noticeable build-up in pipeline demand for foreign currency at banks, revealing a transitory mismatch between supply and demand that has been pressuring the market.
Despite a previous injection of US$50 million in July 2024 aimed at clearing these demands, the RBZ observed continued pressures in recent weeks. To combat this, the central bank injected US$24 million during the first two weeks of September. Following this, an additional US$40 million was sold into the interbank market on September 19, resulting in significant liquidity support for the currency market.
The RBZ stated, “The Reserve Bank’s intervention is consistent with its policy stance of ensuring that all bona-fide foreign currency applications are honored and with its role as a participant in the foreign exchange market.”
The bank reassured stakeholders that it remains committed to facilitating seamless settlements of foreign payments.
Furthermore, the RBZ reported a 13.4% increase in foreign currency receipts during the first eight months of 2024 compared to the same timeframe in 2023. This rise is crucial for maintaining timely settlements for foreign payments from importers’ foreign currency accounts (FCAs) and will support ongoing market stability.
The bank noted, “The favourable performance in foreign currency receipts will continue to sustain economic activity.”
The injection of US$64 million is expected to effectively mop up excess liquidity in the market, thereby further consolidating the stability of the Zimbabwean Dollar (ZiG).
In light of these developments, the RBZ has urged economic agents to comply with the established foreign exchange framework regarding the pricing of goods and services.