{"id":102866,"date":"2025-01-07T12:37:08","date_gmt":"2025-01-07T10:37:08","guid":{"rendered":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told"},"modified":"2025-01-07T14:41:10","modified_gmt":"2025-01-07T12:41:10","slug":"brace-for-more-exchange-rate-swings-zimbabwean-firms-told","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told","title":{"rendered":"Brace For More Exchange-Rate Swings, Zimbabwean Firms Told"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Zimbabwe. <\/strong><\/span>Zimbabwean companies have been advised to brace for further exchange-rate volatility this year following the shock devaluation of the country\u2019s gold-backed currency, ZiG, in September 2024, reported Bloomberg.<\/p>\n<p>ZiG, short for Zimbabwe Gold, is the nation\u2019s sixth attempt at a stable currency since 2009. On September 27, it fell 43% against the US dollar to narrow the gap between the official and parallel-market rates.<\/p>\n<p>This devaluation has impacted consumers\u2019 disposable incomes, driven inflation, and squeezed business profits.<\/p>\n<p>OK Zimbabwe Ltd, the country\u2019s largest retailer, said in December that the devaluation \u201cnecessitated a reevaluation\u201d of working capital and risk-management strategies.<\/p>\n<p>The Zimbabwe National Chamber of Commerce\u2019s Chief Executive Officer, Christopher Mugaga, said that exchange-rate volatility remains a concern despite the devaluation. He added:<br \/>\nAfter the devaluation, balance sheets have been eroded and most executives are worried. To plan using the local currency is to plan to fail.<\/p>\n<p>Shelton Sibanda, Chief Investment Officer at Imara Asset Management, which oversees US$100 million in assets, anticipates that companies will reduce their ZiG holdings as a protective measure.<\/p>\n<p>In an interview with Bloomberg by phone from Harare, Sibanda said \u201cThe velocity, that is the speed of using ZiG will increase\u201d, adding. \u201cNo one will want to keep any ZiG.\u201d<\/p>\n<p>Mugaga said challenges that are likely to affect companies\u2019 profits this year include power shortages lasting up to 18 hours a day.<\/p>\n<p>Moreover, businesses are contending with informal traders for US dollar revenues, exacerbated by stringent local-currency pricing controls imposed by the authorities. Said Mugaga:<\/p>\n<p>The power issue will remain for the first half of the year as it\u2019s linked closely to the hydropower situation in Kariba.<\/p>\n<p>An El Nin\u0303o-induced drought has significantly reduced water levels at the dam, one of Zimbabwe\u2019s primary power sources, exacerbating the country\u2019s energy crisis.<\/p>\n<p>This situation has further strained businesses, which are not optimistic about an improvement in trading conditions soon. Maxen Karombo, CEO of OK Zimbabwe, said:<\/p>\n<p>The operating environment is expected to remain bearish driven by exchange-rate and inflation dynamics.<\/p>\n<p>The ZiG traded little changed on Monday at 25.83 per dollar on the official market, according to data on the Reserve Bank of Zimbabwe\u2019s (RBZ) website.<\/p>\n<p><strong>For More News And Analysis About <span style=\"color: #ff6600\">Zimbabwe<\/span> Follow <span style=\"color: #ff6600\">Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Zimbabwe. Zimbabwean companies have been advised to brace for further exchange-rate volatility this year following the shock devaluation of the country\u2019s gold-backed currency, ZiG, in September 2024, reported Bloomberg. ZiG, short for Zimbabwe Gold, is the nation\u2019s sixth attempt at a stable currency since 2009. On September 27, it fell 43% against the [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":102864,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6],"tags":[15350,19,15351],"class_list":["post-102866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-zig","tag-zimbabwe","tag-zimbabwe-gold"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Brace For More Exchange-Rate Swings, Zimbabwean Firms Told - zimbabwe<\/title>\n<meta name=\"description\" content=\"Zimbabwean companies have been advised to brace for further exchange-rate volatility this year following the shock deval ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brace For More Exchange-Rate Swings, Zimbabwean Firms Told\" \/>\n<meta property=\"og:description\" content=\"Zimbabwean companies have been advised to brace for further exchange-rate volatility this year following the shock deval ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\" \/>\n<meta property=\"og:site_name\" content=\"zimbabwe\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-07T10:37:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-07T12:41:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2025\/01\/sm_1736240950.332175.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Brace For More Exchange-Rate Swings, Zimbabwean Firms Told\",\"datePublished\":\"2025-01-07T10:37:08+00:00\",\"dateModified\":\"2025-01-07T12:41:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\"},\"wordCount\":381,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2025\/01\/sm_1736240950.332175.jpg\",\"keywords\":[\"ZiG\",\"Zimbabwe\",\"Zimbabwe Gold\"],\"articleSection\":[\"all news\",\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\",\"url\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/brace-for-more-exchange-rate-swings-zimbabwean-firms-told\",\"name\":\"Brace For More Exchange-Rate Swings, Zimbabwean Firms Told - 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