Sidumisile Mabena
Judith Phiri
THE Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mushayavanhu has said Zimbabwe has improved the Zimbabwe Gold (ZiG) currency circulation, with ZiG21 billion in circulation and they will continue to align money supply growth with real economic activity.
Unpacking the 2026 Monetary Policy Statement and Launching the Big 5 Upgraded ZiG in Bulawayo, Dr Mushayavanhu said this will be done while ensuring that liquidity conditions remain consistent with the inflation objective of preserving ZiG stability and ensuring sustainable economic growth.
“The monetary policy framework will remain anchored on transparency, market-based instruments and strict adherence to sustained build-up of foreign reserves buffer. The Reserve Bank will also enhance coordination with fiscal authorities to ensure that monetary and fiscal policies remain mutually reinforcing,” he said.
He said the Monetary Policy Statement aims to deepen the use of the local currency and consolidate macroeconomic stability in the economy.
Dr Mushayavanhu said the RBZ has maintained a prudent monetary policy stance to durably entrench price, currency and exchange rate stability in the economy without compromising economic growth.
Highlights of the 2026 Monetary Policy Statement.
The Upgraded BiG 5 ZIG banknote series introduced- official launch and introduction of the upgraded BiG 5 ZIG banknote series with new designs, improved durability and enhanced security features.
Single digit annual inflation achieved- the RBZ has achieved single digit local currency inflation of 4.1 percent in January, for the first time in over three decades.
Low and stable monthly inflation sustained- ZIG monthly inflation remained low and stable averaging 0.4 percent in 2025 and was recorded at around 0.0 percent in January 2026.
Exchange rate stability sustained- The exchange rate remained stable in 2025 between ZIG25-27 per USS and parallel market premium contained below 20 percent.
Prudent money supply management- Reserve money growth contained within target in 2025.
Prudent Liquidity Management- Liquidity levels were consistently maintained within the Optimal Liquidity Levels (OLL) throughout 2025.
Sustained foreign currency receipts- Foreign currency receipts increased to US$16.2 billion in 2025 from US$13.3 billion in 2024, an increase of 21.8 percent. The improvement in foreign currency inflows supported a smooth interbank market and contributed to the build-up of foreign reserves to 1.5 months of import cover.
Adequate foreign reserve cover for ZiG- The available foreign currency reserves of US$1.2 billion cover local currency reserve money of ZiG5.3 billion by about 6 times and about 2 times the entire stock of ZIG deposits of ZIG 18.3 billion asat 31 December 2025.
Banking sector stability and financial inclusion- The banking sector remains safe, sound and inclusive with adequate capital buffers, sufficient liquidity and low non-performing loans of 3.47 percent against an international benchmark of 5 percent as at 31 December 2025.
Robust National Payments Systems (NPS)- The NPS remained robust and resilient with an average uptime of over 95 percent for both RTGS and retail systems in 2025.
Foreign exchange market trading system development- The RBZ is developing a new foreign exchange trading platform for authorised dealers to enhance market efficiency and price discovery.
Targeted Finance Facility (TFF) retained- TFF retained and the facility increased to ZiG1 billion to support productive sectors of the economy.
Exporters’ foreign currency retention- The exporter foreign currency retention threshold has been maintained at 70 percent across all sectors of the economy.
Bank policy rate maintained- The bank policy rate has been maintained at 35 percent.
Statutory reserve requirements maintained- Statutory reserve requirements have been maintained at 15 percent for savings and fixed deposits and 30 percent for demand and call deposits for both local and foreign currency.
Minimum deposit interest rates maintained- The RBZ has maintained the current minimum interest rates for savings deposits at (5 percent for ZiG) and (2.5 percent for USS) and time deposits (7.5 percent for ZiG) and (4 percent for USS).
ZIG Denominated Term Deposit Facility (ZIGDTDF) introduced- To complement NNCDs in managing ZiG liquidity and to move towards indirect monetary policy instruments, the RBZ is introducing the ZIG Denominated Term Deposit Facility (ZIGDTDF).
Upward revision of cash withdrawal limits-
Cash withdrawal limits have been increased to ZiG 10 000 and ZIG 100 000 per week for individuals and cooperates, respectively.
Upward revision of transaction limits- The RBZ has increased transactional limits for mobile money and ZIPIT to support the wider use of ZIG.
Progress on conditions precedent for the transition to mono-currency- Significant progress has been made in meeting the conditions precedent in 2025, for a smooth, market led transition to mono currency by 2030.
Online Reporter