gtag('config', 'UA-12595121-1'); IMF Says Zimbabwe’s ZiG Has Ended Bout of Instability – The Zimbabwe Mail

IMF Says Zimbabwe’s ZiG Has Ended Bout of Instability

The ZiG is the nation’s sixth attempt at having a functioning local currency in the past 15 years. Photographer: Cynthia R Matonhodze/Bloomberg
Spread the love

HARARE,- The International Monetary Fund (IMF) announced that Zimbabwe’s introduction of a bullion-backed currency, known as the ZiG, has successfully ended the economic instability that had troubled the nation earlier this year.

In a report by Bloomberg, the IMF said, “The ZiG official exchange rate has so far remained stable, ending a bout of macroeconomic instability in the first three months of the year.”

This stability is a significant turnaround for Zimbabwe, which has faced considerable economic challenges in recent years.

The IMF’s Article IV review noted that if macroeconomic stabilization continues, cumulative inflation for the remainder of the year is projected to be around 7%. This marks a significant improvement in the country’s economic outlook.

Moreover, the IMF revised Zimbabwe’s growth forecast to 2%, with a recovery expected in 2025. The Fund’s assessment highlights the potential for sustained economic stability and growth, provided the current measures remain effective.

The introduction of the bullion-backed currency is seen as a pivotal move in restoring confidence in Zimbabwe’s financial system and addressing the volatility that has affected the nation’s economy.