Zimbabwe today devalued its local currency, the Zimbabwe Gold (ZiG), by 44% to trade at 24.3902 against the United States dollar, down from 13.9987 yesterday.
The local currency was under pressure with the retail business sector threatening to close down because the rate had become uncompetitive.
The new rate is, however, still way below the market rate which Zimpricecheck says is as low as 35:1.
The central bank says the ZiG has been under pressure from mid-August with the gap between the official exchange rate and the black market widening.
It said this was despite the increase foreign currency inflows into the country of $8.5 million in the first eight months of this year, up 13.4% compared to the same period last year.
The central bank also reduced the amount of foreign currency individuals can take out of the country from $10 000 to $2 000 and increased the bank policy rate from 20% to 35% with immediate effect.
Below in the Monetary Policy Committee Statement:
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