President of Zimbabwe, Emmerson Mnangagwa, has signalled that measures will shortly be announced to halt the decline in the local currency, the worst performing against the Dollar in the world so far this year.
"The fiscal and monetary authorities will be implementing a raft of policy measures to arrest price increases, stabilise the foreign exchange rate, maintain the value of our currency and ultimately encourage service," said Mnangagwa.
"We shall soon be announcing the introduction of our structured currency," Mnangagwa stated on Tuesday during his first cabinet meeting of 2024 in Harare.
Indeed, Zimbabwe's fiscal and monetary chiefs are currently working on a series of policy measures to stem price hikes, stabilise the nation's currency and encourage savings.
Up to now, in 2024, the Zimbabwean dollar has lost over 40% of its value against the dollar, and on Tuesday, it was trading at 10,927, its weakest since it was reintroduced back in 2019, Bloomberg reports.
The currency depreciation has fuelled annual inflation in Zimbabwe, which skyrocketed to 34.8% in January from 26.5% in December. Mounting costs of food as well as goods and services, such as electricity and housing, led to the surge.
Past efforts, which analysts saw as "half-hearted", have been unsuccessful in addressing Zimbabwe's rapidly deteriorating economy, which is already plagued by ineffective governance and widespread corruption in public service.
Zimbabwe has faced ongoing challenges in stabilising its foreign exchange rate despite implementing various measures to bolster it. These measures include requiring corporates to pay taxes exclusively in the local currency, introducing digital currency backed by gold, and liberalising the exchange rate.
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