Zimbabwe central bank chief says ZiG 43% devaluation is ‘once-off’ event

Zimbabwe's Reserve Bank Governor, John Mushayavanhu, assured citizens that the recent 43% devaluation of the gold-backed Zimbabwe Gold (ZiG) currency was a one-time event.

He expects stability moving forward and a reduction in prices. The devaluation occurred to address a gap between official and unofficial exchange rates.

Despite further weakening of the ZiG, the central bank aims to control money supply by limiting credit creation.

Mushayavanhu noted that local currency deposits now total 10.7 billion ZiG, with gold and hard-currency reserves rising to $450 million since the ZiG's introduction in April.