Online Reporter
Business Reporter
ZIMBABWE’S foreign currency reserves have swelled to US$900 million, a significant increase driven by a US$2,2 billion surge in foreign currency inflows, the Reserve Bank of Zimbabwe (RBZ) announced following its Monetary Policy Committee (MPC) meeting on Friday.
The latest figures represent a major milestone for the country’s economic stabilisation efforts, with reserves now US$100million shy of US$1 billion.
This position is considered crucial in sustaining the stability of the exchange rate and supporting the current account balance.
The robust inflows are attributed to a strong domestic economic performance, primarily driven by the export sectors, with gold and tobacco leading the charge.
Total foreign currency inflows for the period to August 31, 2025 reached US$10,4 billion, reflecting a remarkable increase from US$8,2 billion received during the corresponding period a year ago.
The MPC noted that the improved inflows were supporting a strong current account surplus, expected to increase further to US$1,3 billion.
The sustained accumulation of foreign currency reserves, coupled with prudent money supply management, has resulted in continued exchange rate stability since September 2024.
The committee highlighted that low inflation pressures were also being reflected, with the month-on-month inflation for the Zimbabwe Gold (ZiG) currency averaging 0,6 percent between February and August 2025.
Annual ZiG inflation is now expected to decline significantly, trending downwards towards the 20 percent level by December 2025.
The central bank has all along been working with a 30 percent inflation target.
In view of this positive outlook, the MPC resolved to maintain the current monetary policy stance, keeping the key rate at 35 percent to ensure continued exchange rate stability in the forthcoming period.
The statutory reserve requirements for savings and time deposits in ZiG, and for demand and call deposits in both local and foreign currency, remain unchanged at 30 percent.
Bongani Ndlovu