RBZ says ZiG reserves rise to US$980m
Zimbabwe’s central bank reported foreign currency reserves supporting the ZiG currency increased nearly 9 percent to reach $980 million, moving closer toward its target of $6 billion needed for transitioning to a single currency system. Reserve Bank of Zimbabwe director of Economic Research Nebson Mupunga stated the institution aims to achieve over $1 billion in reserves by year’s end, equivalent to approximately 1.2 months of import cover, with gradual increases continuing until reaching six months of coverage.
The monetary authority maintains reserves backing the ZiG at four times the amount of currency in circulation, significantly exceeding the standard 100 percent coverage employed by other nations. Approximately ZiG18 billion circulates within the formal economy, though economist Gift Mugano questioned the viability of increased local currency demand given minimal adoption in the informal sector, which comprises over three-quarters of economic activity.
