The Reserve Bank of Zimbabwe (RBZ) has introduced a new round of Zimbabwe Gold (ZiG)-denominated Term Deposit Facility Bills aimed at absorbing excess liquidit...
The Reserve Bank of Zimbabwe (RBZ) has introduced a new round of Zimbabwe Gold (ZiG)-denominated Term Deposit Facility Bills aimed at absorbing excess liquidity from the market, stabilising the exchange rate and strengthening confidence in the local currency.
In a statement issued on Saturday, the central bank announced the introduction of 30-day, 60-day and 90-day ZiG Denominated Term Deposit Facility Bills. The investment instruments carry annual interest rates of 8 percent, 9 percent and 11 percent respectively.
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According to the RBZ, the new bills are available to a wide range of investors, including banks, companies and individual investors. The central bank said the measure forms part of ongoing efforts to maintain monetary stability and support the Zimbabwe Gold currency.
“The Reserve Bank of Zimbabwe (RBZ) has introduced a new round of 30, 60 and 90-day ZiG Denominated Term Deposit Facility Bills (ZiGDTDF), offering interest rates of 8%, 9% and 11% per annum, respectively,” the RBZ said.
The central bank said the investment instruments are intended to encourage market participants to temporarily lock away their ZiG funds in exchange for guaranteed returns. This approach is expected to reduce the amount of money circulating in the economy.
“The instruments are available to banks, corporates and individuals and form part of the central bank’s efforts to manage liquidity, stabilize the exchange rate and strengthen confidence in the Zimbabwe Gold (ZiG) currency,” the RBZ said.
The move comes at a time when concerns have been raised over growing liquidity levels in the financial system. Zimbabwe has also recorded a negative trade balance over the past several months, resulting in increased demand for foreign currency to finance imports.
According to the RBZ, reducing excess liquidity will help ease pressure on the exchange rate and contribute to preserving the value of the local currency.
“By encouraging investors to lock away ZiG funds for short periods, the RBZ aims to reduce excess money circulating in the economy and limit pressure on the exchange rate,” the central bank said.
The introduction of the new bills is part of a broader series of monetary policy measures that have been implemented by the central bank in recent years to maintain stability in the economy.
“This is the latest in a series of liquidity-management measures employed by the central bank,” the RBZ said.
The central bank noted that previous interventions included the introduction of Mosi-oa-Tunya Gold Coins in 2022, Gold-Backed Digital Tokens in 2023 and other deposit instruments aimed at absorbing excess liquidity from the market and supporting monetary stability.
“Similar interventions included the launch of Mosi-oa-Tunya Gold Coins in 2022, Gold-Backed Digital Tokens in 2023, and various deposit instruments designed to absorb excess liquidity and support monetary stability,” the RBZ said.
The latest initiative reflects the central bank’s continued efforts to manage liquidity, support exchange rate stability and strengthen confidence in the Zimbabwe Gold currency among market participants.
