Zimbabwe’s president promises currency stabilisation measures

Published

1 day ago

October 2, 2024

Five months after the country’s new gold-backed currency was established, Zimbabwe’s President Emmerson Mnangagwa on Wednesday pledged to enact corrective measures to safeguard people’s incomes.

Zimbabwe Gold, or ZiG, saw a 43% devaluation last Friday following a roughly 47% decline in the underground market.

“We note with concern the resurgence of the parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect

In a speech to the parliament, Mnangagwa declared, “We protect Zimbabweans from disruptions.”

Since the devaluation, the ZiG has declined once more; on the black market, it has dropped to 32 per US dollar from Friday’s rate of 24.3902 to 25.2824 on Wednesday.

According to Mnangagwa, the devaluation of the ZiG will promote trading on the official market and provide “greater flexibility” for those who own FX.

“Government remains committed to backing the currency through setting aside 50% of royalties to build reserves,” he said.

The country in southern Africa, which experienced hyperinflation under long-time leader Robert Mugabe, is making its sixth attempt in 15 years to adopt a stable currency with the ZiG.

After meeting with officials from the central bank, the Bankers Association of Zimbabwe stated on Wednesday that the action taken last week would result in price increases and erode confidence.

Related Topics:Emmerson Mnangagwa Featured Zimbabwe

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TotalEnergies CEO to meet Mozambique president for further project discourse

Published

16 hours ago

October 3, 2024

Ifeoluwa Dada

To discuss the company’s proposed LNG project in Mozambique with the nation’s new president, CEO Patrick Pouyanne has announced he will travel to Mozambique later this month.

“The project remains profitable, we remain committed,” Pouyanne said at an investor presentation.

The $20 billion Mozambique LNG project has been delayed because of worries about violent upheaval in the area, although Pouyanne claimed there had been “progress on security” recently.

On October 9, Mozambicans will cast their votes in presidential and legislative elections that will almost certainly prolong the fifty-year rule of the ruling Frelimo party, which is fighting a protracted Islamist insurgency in one of the largest gas reserves in Africa.

Pouyanne went on to say that lenders had affirmed between 70% and 80% of a $14 billion finance package that supports the project.

“We are waiting on the green light on financing from three credit agencies, some are in Western countries where rules on gas have changed … as soon as that is in place we will move,” Pouyanne said.

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Tanzania’s central bank maintains 6% lending rate

Published

16 hours ago

October 3, 2024

Ifeoluwa Dada

Tanzania’s central bank announced on Thursday that it had left its benchmark interest rate at 6% unchanged.

The benchmark rate was maintained by the central bank at 6% in the two quarters leading up to September, up from 5.5% when the rate was first published in January.

Agriculture, construction, and manufacturing led real GDP growth to 5.3% in 2023, up from 4.7% in 2022. Private investments drove demand.

Tight monetary policy and food and energy price moderation reduced inflation from 4.3% in 2022 to 3.8% in 2023. Due to foreign cash shortages, the Tanzanian shilling fell 8% in 2023.

Despite mounting pressure on the shilling, consumer inflation has remained comfortably below the bank’s objective of 5%. August saw a rise in inflation from 3.0% year over year to 3.1%, according to information from the statistics office.

In recent weeks, many African countries announced monetary policy decisions. Nigeria raised its benchmark interest rate by an additional 50 basis points, to a new record high of 27.25%, Ghana reduced its benchmark monetary policy rate by 200 points to 27% at a normal meeting. while South Africa decreased its benchmark interest rate by 25 basis points to 8% after holding seven consecutive meetings at a 15-year high of 8.25%.