Currencies
IMF Says Zimbabwe’s ZiG Has Ended Bout of Instability
- Fund projects inflation at 7% on account of stability
- Growth forecast revised to 2%, recovery seen in 2025
The ZiG is the nation’s sixth attempt at having a functioning local currency in the past 15 years.
Photographer: Cynthia R Matonhodze/BloombergThe International Monetary Fund says the introduction of a bullion-backed currency by Zimbabwe has helped to end instability that had plagued the economy.
“The ZiG official exchange rate has so far remained stable, ending a bout of macroeconomic instability in the first three months of the year,” the Fund said in an emailed statement Wednesday following an Article IV review. “Assuming that macro-stabilization is sustained, cumulative inflation in the remainder of the year is projected at about 7%.”