The Reserve Bank of Zimbabwe will cap individual transfers tutside the country at $2,000. The decision comes as the country struggles to have enough forex to hedge its Zimbabwe Gold (ZiG) currency.
The reduction of the cap on dollars leaving the country is steep, going from $10,000.
In the same announcement, the central bank also announced that it would increase lending rates to 35% from 20% on the back of an increase in monthly inflation from -0.82% to 1.4%.
“The MPC is convinced that the above measures will go a long way in addressing the exchange rate risks, anchor the inflation expectations and stabilise prices in the near to short term,” the central bank said.
Despite a surge in foreign currency inflows in 2024, reaching $8.5 billion in August compared to $7.5 billion in the same period in 2023, Zimbabwe continues to struggle with the availability of forex.
Earlier today, the central bank also devalued its gold-backed ZiG currency by 43% as adoption of Zimbabwe’s sixth attempt at a functioning currency struggled.As a result, the bank reduced the price of $1 from 14 ZiG to 24 ZiG.