Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
THINK tank, Africa Economic Development Strategies (AEDS), says Zimbabwe’s path to durable stability now hinges on sustained policy discipline, wider use of ZiG and structural reforms to lock in gains made in the first half of the year.
In its Second Quarter Economic Review and 2026 Economic Outlook, AEDS notes that the ZiG/US rate has held between ZiG25–27/US and reserves have risen to over US$1,6 billion.
With the parallel market premium projected to narrow to 15 percent, the review says the focus must shift to consolidating stability.
Key recommendations to sustain stability, as recommended by AEDS, include deepening the use of ZiG in transactions.
A wider domestic circulation of the local currency is seen as critical to anchoring confidence and reducing reliance on the parallel market.
AEDS also said authorities must maintain fiscal and monetary discipline.
“Continued stability of the ZiG and, most critically, sustained fiscal discipline, which is key in avoiding monetisation of deficits, are listed as the central assumptions for the outlook,” said AEDS.
On monetary policy, the AEDS recommends that the policy should remain in a restrictive stance in the near term, before cautiously transitioning toward a more balanced approach later in 2026.
Even with possible modest rate easing later, AEDS said rates will remain high by regional standards to guard against inflationary pressures.
The think tank also emphasised the need to strengthen the credibility of monetary and fiscal institutions
The review also calls for further strengthening the credibility of monetary and fiscal institutions.
