Old Mutual Limited continues to classify ZiG as hyperinflationary

SOUTH African financial services giant, Old Mutual Limited (OML) has raised red flags over Zimbabwe’s currency stability, as it continues to designate the Zimbabwe Gold (ZiG) as hyperinflationary after posting declines in group earnings. 

This move comes as fiscal and monetary authorities continue to tout the ZiG’s recent stability as evidence that it could buck the country’s history of short-lived currencies. 

It also follows Reserve Bank of Zimbabwe data showing that foreign currency reserves grew by more than 150% to US$730 million in June, from US$285 million in April, funds meant to shore up the ZiG. 

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