Zimbabwe’s central bank has maintained its key policy rate at 35%, the bank announced on Thursday, as the country grapples with rising inflation and continued currency depreciation.
Inflation surged in January, driven primarily by food and housing costs, impacting both U.S. dollar and local currency transactions.
Zimbabwe introduced its gold-backed currency, the Zimbabwe Gold (ZiG), in April last year, but a sharp devaluation in September undermined confidence. The ZiG has continued to weaken since, trading at approximately 26.4 per U.S. dollar on Thursday, down from its initial launch rate of 13.6.
