The Reserve Bank of Zimbabwe has injected US$64 million into the foreign exchange market in September to stabilize the country’s currency, the Zimbabwe dollar (ZiG).

In a press statement, the central bank said it had witnessed increased demand for foreign currency at banks in recent weeks, leading to “undue pressure on the foreign exchange market”.

To address supply and demand mismatches, the bank injected US$24 million into the interbank foreign exchange market in the first two weeks of September. It then sold an additional US$40 million on 19 September.

The bank stated this intervention is “consistent with its policy stance of ensuring that all bona-fide foreign currency applications are honoured”.

According to the statement, foreign currency receipts increased by 13.4% in the first eight months of 2024 compared to the same period last year. The bank says this increase, along with its interventions, will help ensure “timely settlement of foreign payments”.

Governor John Mushayavanhu called on businesses to comply with foreign exchange regulations when pricing goods and services.

The Reserve Bank aims to “entrench the stability of ZiG and ensure the smooth settlement of foreign exchange transactions”, the statement concluded.

Zimbabwe has faced long-standing economic challenges, including currency instability and high inflation.

The central bank’s actions reflect ongoing efforts to manage these issues.