Zimbabwe’s central bank moves toward a floating exchange rate to stabilise the economy and boost investor confidence. (Photo by Jekesai NJIKIZANA / AFP)
While Matshe highlighted the central bank’s vision of a more flexible and market-driven currency system, he did not specify when the shift would occur. He explained that the long-term objective is to have a floating exchange rate that operates independently of government intervention.
Zimbabwe Central Bank Introduced ZiG in 2022
Since its introduction in 2022, Zimbabwe’s gold-backed currency has been central to the government’s efforts to address the country’s persistent inflation and lack of investor confidence.
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Initially pegged to a fixed exchange rate, the currency has faced critical challenges, contributing to rising calls for a more market-driven approach.
Matshe’s comments may suggest the central bank’s new determination to eventually align the country’s currency system with global market dynamics, although he indicated that the transition would be gradual.
The move is viewed as a step toward liberalising Zimbabwe’s economic policies, which have been hindered by years of instability and hyperinflation.
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