Online Reporter
Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has forecast the country’s foreign exchange reserves to reach US$2 billion by the end of the year, while the exchange rate is expected to remain stable, which will anchor the prevailing single-digit inflation.
Speaking at the Africa Economic Development Strategies (AEDS) Mid-Term Economic Review High-Level Policy Dialogue in Harare, RBZ deputy governor Dr Innocent Matshe declared that the “era of speculating on currency is over,” pointing to robust macroeconomic fundamentals and a tightening grip on monetary policy.
Dr Matshe revealed that Zimbabwe’s economy is projected to grow by 5 percent this year.
While lower than the 8.3 percent growth rate recorded in 2025, he emphasised that Zimbabwe remains one of the fastest-growing economies in the region, making it a prime destination for foreign investment.
A key anchor for the local currency, ZiG, has been the aggressive accumulation of strategic reserves over the past 12 months.
Dr Matshe reported that foreign currency reserves reached YS$1.6 billion last week, providing roughly 1.5 months of import cover.
“Import cover should ideally be between three and six months. We are halfway there,” Dr Matshe said, adding that the central bank expects to achieve a “two times cover” by the end of the year.
He further noted that the RBZ holds six times the stock of ZiG reserve money and double the cover for all local currency deposits.
To improve market transparency and eliminate the perception that the central bank fixes the exchange rate, Dr Matshe announced that the RBZ is transitioning to a digital trading platform.
The system will allow economic agents to interact freely using real-time data under the current willing-buyer-willing-seller framework.
The deputy governor highlighted that the parallel market premium has narrowed, with the official exchange rate stabilising between 25 and 27 ZiG per US dollar.
Addressing economic agents who may be betting on a sudden devaluation to erode their local currency debts, Dr Matshe issued a clear warning:
“A lot of us wish for the exchange rate to depreciate so that those loans that we took will be expensed, but it’s not going to happen… The era of speculating on currency is over.”
