RBZ reserves hit US$1bn

STAFF WRITER

Zimbabwe’s gold and foreign-currency reserves backing the Zimbabwe Gold (ZiG) currency have surged past the US$1 bn mark for the first time since the introduction of the domestic unit, a development the Reserve Bank says reflects deepening market confidence, strengthening external inflows and improving macro-economic stability.

According to the latest Monetary Policy Statement, released after the Monetary Policy Committee (MPC) met on Monday, the reserve position now provides more than 1.2 months of import cover, marking a critical step toward meeting the conditions for the country’s long-term objective of transitioning to a monocurrency by 2030.

The central bank said Zimbabwe’s foreign-currency earnings have also reached historic levels, with export receipts hitting US$13 bn between January and October 2025, the highest on record, underscoring sustained growth in hard-currency inflows.

“In the 10 months to October 2025, total foreign currency inflows amounted to more than US$13 billion, over 21% increase compared to the same period in 2024,” the RBZ governor Dr John Mushayavanhu said.

“Reflective of the sustained foreign currency inflows, foreign currency reserves backing the ZiG reached current levels of about US$1 bn, equivalent to more than 1.2 months of import cover. This has underpinned the smooth functioning of the foreign exchange market under the Willing-Buyer Willing-Seller (WBWS) arrangement.

“Notably, the increase in foreign currency inflows ensured that the foreign exchange market fully met all bona-fide import and foreign payment requirements.”

With export earnings on a strong upward trajectory and reserves expanding, the MPC says Zimbabwe is now making “bold strides” toward meeting the Conditions Precedent (CPs) for a future single-currency regime, as signalled in the 2026 National Budget and National Development Strategy 2 (NDS2).

“Importantly, the MPC noted that the aforestated positive monetary and financial developments show that the country is making bold strides towards meeting the Conditions Precedent (CPS) for transitioning to a monocurrency by 2030 as announced in the 2026 National Budget and National Development Strategy 2 (NDS2).”

The committee also welcomed fiscal measures announced in the budget, particularly the reduction of the Intermediated Money Transfer Tax (IMTT) on ZiG,denominated transactions from 2% to 1.5%.

Authorities say aligning tax policy with monetary objectives will help entrench wider use of the domestic unit and deepen financial inclusion.

“This measure is critical to complement monetary policy measures aimed at promoting the wider use of the domestic currency and financial inclusion in support of the eventual transition to monocurrency,” Mushayavanhu added.

The MPC further noted that the launch of NDS2 (2026–2030) sets a clear agenda for macro-economic consolidation and financial-sector deepening — two pillars viewed as essential for achieving Vision 2030, which targets the attainment of an Empowered and Prosperous Upper-Middle Income Society.

“The MPC also noted the launch of the National Development Strategy 2 (2026-2030) under which macro-economic stability and financial sector deepening will be critical for the realisation of Vision 2030 of an Empowered and Prosperous Upper-Middle Income Society.”