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RBZ Expects Price Increases To Slow As ZiG Stabilises

5 months agoTue, 08 Oct 2024 06:46:48 GMT
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RBZ Expects Price Increases To Slow As ZiG Stabilises

Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu said that the rise in prices at formal retail shops is expected to moderate in response to the recent monetary policy measures aimed at halting the depreciation of the local currency, ZiG.

Speaking to The Sunday Mail, Mushayavanhu claimed that the foreign exchange market has largely stabilised over the past two weeks, with the parallel market exchange rate showing signs of improvement following the bank’s intervention.

The RBZ recently devalued the official exchange rate to ZiG24: USUS$1, down from approximately ZiG14:US$1, in response to the depreciation of the ZiG on the parallel market. Said Mushayavanhu:

In line with the stability observed in the exchange rate, the increase in the prices of goods has significantly moderated.

It seems most retailers had priced using higher exchange rates, expecting the currency to continue depreciating on the parallel market.

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As such, the Reserve Bank expects prices of most goods to also decline in the forthcoming weeks as the exchange rate remains stable.

The central bank injected US$110 million into the market between July and September to alleviate foreign currency backlogs. Said the central bank Governor:

In addition to the previous interventions announced before, the Reserve Bank injected an additional US$50 million soon after the recent monetary policy measures.

In terms of supply of foreign currency from other generators of foreign currency, the Reserve Bank expects improvements in the near term.

It should be noted that, unlike prices, the supply of goods and services, including foreign currency, responds with a lag.

Mushayavanhu expects prices to start declining in the coming weeks as the exchange rate remains stable.

He said that many retailers had initially set prices based on higher exchange rates, anticipating further depreciation.

Although the prices of regulated goods like electricity tariffs have increased, the RBZ anticipates that the parallel market rate will appreciate soon due to strong foreign currency inflows, which rose by 13.4% in the first eight months of 2024 compared to the previous year.

Mushayavanhu said the Financial Intelligence Unit (FIU) is monitoring and penalising businesses that refuse to transact in ZiG or those using parallel market exchange rates.

He added that compliance levels in the formal sector have significantly improved, but efforts continue to improve compliance within the informal sector.

Meanwhile, since the recent induced devaluation of the ZiG from 14.1 to 24.3 per US$1 by the central bank, the currency has continued to lose value in the formal market, trading at an average rate of 25.8 on Tuesday, October 8.

More: Pindula News

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30 Comments

kkkk · 5 months ago
John vakatodhakwa iwe
some ordar · 5 months ago
kumhaaaaaaaa taaaaaaa kwako
baba jukwa · 5 months ago
erudite come and side with your partner in crime
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erudite · 5 months ago
im too tired, no zesa and my data bundle has run out again, erudite out ... of data and money and zesa
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mombe yevhu · 5 months ago
ko rinoita kukumirwa seiko zig racho.
😏 Pindula watch · 5 months ago
Pic ya Mushayavanhu iyi changoshota I belt re WWE wrestling 🤼‍♂️
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Zvako a mushayazig · 5 months ago
Baseless doing from a person whom I expect to be a graduate in financial sector. Now behaving like amadgoat casting uselessness smile of a hungry frog. Never tobe the zvig is useless thinking ever introduced to citizens. Waste of time and resources. If one was to keep dump and vacate the camera it would make sense
Babazvangu · 5 months ago
kandai number dzevefinancial unity vacho vatibatsire tatambura isu kuda vangatibatsire
· 5 months ago
Tsvaka vanokubatsira kutsvaka Mari
Helter Skelter · 5 months ago
Idzi dzangovewo nharo semunhu akutanda nyadzi.
Cde · 5 months ago
Those with Zanu PF links are the ones who control Black Market, all the Bingas do pretend to support Zanu only for their personal gains, it's hard for Minister of Finance and RBZ governer to break that
Apostle · 5 months ago
Give us our lives back. We don't live for ZiG. Don't force it on us. Namatai chimwari henyu moga. Satanists.
Anonymous · 5 months ago
"but efforts continue to improve compliance within the informal sector." LOL. That means they have done nothing.
CHINHEMETEME · 5 months ago
face inenge yema aliens
Political Analylist📌 · 5 months ago
Ngava zive there are two Official banks🏛️ in Zimbabwe Central Bank and Black Market know as Vakomana to abide by the official rate💹 it becomes impossible due to shortage cash in there banks🏦 JUST IMAGINE Haugone kuChinja ZiG kuenda kuUSD ne our own Central Banks🏦 responsible for this transactions So To CONCLUDE Hapana hapana MR Mushayavanhu THE BLACK MARKET will always RULE nekuti Ndokune mari yenyika #Mr Governor pferai Danty😮‍💨
Anonymous · 5 months ago
Zanoids are in both banks. Easiest way to make money in Zimbabwe at the expense of the nation. Where have we seen that before?
nherera · 5 months ago
the governor got his degree ku Herbert chitepo school of idiology his lecture was Chinotimba
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i also expect a lot · 5 months ago
I expect zig notes to be torn up and used as compost by december 2024
1
prof · 5 months ago
kkkkkkkkkkk go deeper papa
laugh emoji1
... · 5 months ago
Compost yacho inouraya mbewu
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sir harare · 5 months ago
@kizito kkkkkk volume volume
Muzeketwa · 5 months ago
Chando zvachakapfuura. I hope dzei manje idzi
Sensei Kizito · 5 months ago
Saka mukoma John vanenge vaine maZiG muhomwe here kana kuti ndezve basa chete.🥋🏋️‍♂️🤸‍♀️🤸‍♂️
Sir African · 5 months ago
Mushayavanhu has joined theschool of lies .Until they put fundamental policies in place Zig will keep on falling .No currency has ever competed with the usde and came out unscathed
JakeX · 5 months ago
There is a reason they call it King Dollar. And recently it has been killing currencies especially in this US election cycle.
John 3 · 5 months ago
Expect the prices to decline by 5% after rising by 100%. Thats how stable the Zimbabwean economy is.
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Anonymous · 5 months ago
Classic con. We will devalue by 100% but when we give it back it to you are 5 % cheaper we will be doing you a favour. Be grateful to your masters, Zimbabweans.
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king 98 · 5 months ago
okay, let's see

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