## ZIMBABWE—CHANGE IN REPRESENTATIVE RATE

## Source details

**Canonical URL:** [ZIMBABWE—CHANGE IN REPRESENTATIVE RATE](https://www.imf.org/-/media/files/publications/cr/2024/english/1zweea2024001-print-pdf.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/cr/2024/english/1zweea2024001-print-pdf.pdf.md)
- [Structured JSON version](/-/media/files/publications/cr/2024/english/1zweea2024001-print-pdf.pdf.json)

---

### Background
- IMF Country Report No. 24/303.
- The paper was prepared by a staff team of the International Monetary Fund based on information available at the time it was completed on September 9, 2024.
- Zimbabwe introduced the Zimbabwe Gold in April 2024, replacing the Zimbabwe dollar.
- Zimbabwe informed the Fund on April 29, 2024 of the introduction of the new currency called the Zimbabwe Gold.
- The Zimbabwe Gold is described as a structured currency anchored by a composite basket of foreign currency and precious metals held as reserves for this purpose by the Reserve Bank of Zimbabwe.
- Prior to the introduction of the Zimbabwe Gold, the Zimbabwe dollar was the currency used for operations and transactions between Zimbabwe and the Fund.
- Document approved by Bernard Lauwers and prepared by the Finance Department in consultation with the African, Legal, and Monetary and Capital Markets Departments.

### Procedure for the Representative Rate
- The procedure to establish the representative rate for the Zimbabwe dollar was established in December 2019.
- The representative rate is used to value the Fund’s holdings of Zimbabwe’s currency in terms of the SDR.
- For the Zimbabwe dollar, the representative rate was defined as the midpoint between the buying and selling rates against the U.S. dollar as reported by the Reserve Bank of Zimbabwe.
- Following the introduction of the Zimbabwe Gold, staff consulted with the Zimbabwean authorities and, pursuant to Rule O-2(b) of the Fund’s Rules and Regulations, were notified that:
  - The daily representative exchange rate for the Zimbabwe Gold is the midpoint (average rate) between buying and selling rates against the U.S. dollar as reported by the Reserve Bank of Zimbabwe.
- In accordance with Rule O-2(c) of the Fund’s rules and regulations, staff proposes that the Executive Board adopt a draft decision on the new procedure to establish the representative rate for Zimbabwe’s currency.

### Proposed Decision
- The following decision is proposed for adoption by the Executive Board by a majority of votes cast:
  - The Fund finds, after consultation with the authorities of Zimbabwe, that the representative exchange rate for the Zimbabwe Gold is the midpoint (average) between the buying and selling rates against the U.S. dollar as reported by the Reserve Bank of Zimbabwe.

*Prepared by the Finance Department in consultation with the African, Legal, and Monetary and Capital Markets Departments; completed on September 9, 2024.*

---


_Source: https://www.imf.org/-/media/files/publications/cr/2024/english/1zweea2024001-print-pdf.pdf_