Online Reporter
Nelson Gahadza
Senior Business Reporter
Zimbabwe’s foreign currency position strengthened significantly in the half-year to June 2026, driven by export earnings and diaspora remittances, surging 47,8 percent to US$10,72 billion, bolstering the country’s capacity to meet external obligations.
This helped push usable reserves held by the Reserve Bank of Zimbabwe to US$1,7 billion by the end of July.
Presenting the 2026 Mid-Term Monetary Policy Statement, RBZ Governor Dr John Mushayavanhu said the strong earnings strengthened the country’s external position, providing greater capacity to meet external payment obligations and support stability in the foreign exchange market.
Foreign currency receipts rose to US$10,72 billion in the six months to June 2026, from US$7,25 billion received during the corresponding period last year.
Dr Mushayavanhu said the increase was largely driven by stronger export receipts and diaspora remittances, with the higher inflows exceeding foreign currency payments of US$7,30 billion during the period.
“The robust (economic) growth momentum for the country has supported a 47,8 percent increase in foreign currency inflows during the first half of the year, which amounted to US$10,72 billion as of 30 June 2026.
“The higher foreign currency inflows exceeded the cumulative foreign currency payments of US$7,30 billion, recorded between January and June 2026,” he said.
According to the MPS, the increase in receipts was dominated by export proceeds, which rose 90,7 percent to US$7,53 billion from US$3,95 billion in the first half of 2025.
Export proceeds accounted for 70,3 percent of total foreign currency receipts, underlining the continued importance of the export sector in generating liquidity for the economy.
Mining was the major contributor to the export surge, with earnings rising to US$6,21 billion from US$2,81 billion, representing a 121,3 percent increase.
Gold remained the biggest driver within the mining sector, with receipts increasing 176 percent to US$3,82 billion from US$1,38 billion.
Platinum earnings rose 82,8 percent to US$1,46 billion, while lithium ore and concentrates increased 78,2 percent to US$382,4 million.
Chrome ore and ferrochrome receipts also rose 60,1 percent to US$239,5 million. Tobacco, another important source of foreign exchange, generated US$967,6 million, up 23,5 percent from US$783,7 million recorded in the same period last year.
According to Dr Mushayavanhu, the strong export performance was complemented by an increase in diaspora remittances, which rose 41,4 percent to US$1,55 billion from US$1,09 billion.
“Remittances accounted for 14,4 percent of total foreign currency receipts, providing another important source of hard currency at a time when Zimbabwe continues to manage its transition towards greater monetary and exchange-rate stability,” he said.
According to the MPS, other sources of foreign currency also recorded mixed movements. Foreign direct investment increased 126,8 percent to US$269,9 million, while income from foreign investments rose 35,9 percent to US$88,9 million.
However, private loan proceeds declined by 33,1 percent to US$984,9 million, while receipts from non-governmental organisations fell 46,1 percent to US$296,6 million.
Meanwhile, the stronger inflow position translated into an improvement in reserves. “Reflecting the increased foreign exchange inflows, reserves increased to US$1,7 billion by the end of July 2026, equivalent to approximately 1,7 months of import cover,” Dr Mushayavanhu said.
He added that the reserves were also supported by gold purchases and in-kind royalties, highlighting the combined effect of foreign exchange generation and reserve accumulation measures.
Dr Mushayavanhu said the improved reserve position has strengthened the central bank’s ability to intervene in the interbank foreign exchange market and meet bona fide foreign payment requirements.
“The foreign currency reserves supported the Reserve Bank’s strategic intervention in the interbank foreign exchange market, ensuring that all bona fide foreign payments are met,” he said.
He also noted that the increased availability of foreign exchange has consequently supported exchange-rate stability.
During the first half of 2026, the ZiG/US dollar exchange rate moved within a range of ZiG25 to ZiG27 per US dollar, while the parallel-market premium averaged around 15 percent.
The improvement in the external position was further reflected in the current account, which strengthened to an estimated surplus of US$1,3 billion in the first half of 2026 from US$248 million during the same period in 2025.
However, the gains in foreign currency receipts are being matched by rising demand for foreign exchange.
Foreign payments through authorised dealers increased 44,9 percent to US$7,3 billion during the first six months of the year.
Trade-related payments accounted for 81 percent of total payments, with US$2,7 billion, or 37 percent, going towards raw materials, intermediate goods and capital goods.
Fuel imports alone rose 64,6 percent to about US$1,4 billion from US$853,5 million, reflecting higher international energy prices.
