The Reserve Bank of Zimbabwe (RBZ) has officially devalued the Zimbabwean dollar (ZWL), also known as the Zim dollar or ZiG, to 25 ZWL per US dollar. This decision aims to align the official exchange rate with market realities.
The previous official rate had become unsustainable, with the unofficial rate reaching 35 ZWL per USD. The 40% devaluation brings the official rate closer to the prevailing market rate. The RBZ’s move acknowledges the need for a market-driven exchange rate to stabilize the economy.
The devaluation is expected to reduce the disparity between official and unofficial exchange rates, encourage foreign investment, and increase competitiveness for local exporters. However, it may also lead to higher prices for imported goods and services, reduced purchasing power for consumers, and increased cost of living.
The RBZ has pledged to continue monitoring the situation and implementing measures to maintain economic stability. The central bank’s decision marks a significant shift in Zimbabwe’s economic policy, aiming to revitalize the economy.
