Online Reporter
Michael Tome, Zimpapers Business Hub
ZIMBABWE’S foreign currency receipts bulked 22,5 percent to US$6 billion in the first five months of 2025, up from US$4,9 billion realised in the same period last year on account of the improvement in prices of key export minerals and the growth in remittances.
According to the Reserve Bank of Zimbabwe the substantial growth in foreign currency receipts is attributable to two primary factors starting with global prices for the country’s key mineral exports and a notable increase in remittances from abroad.
These factors collectively bolstered Zimbabwe’s foreign exchange earnings, providing a much-needed boost to the country’s economy.
Export earnings dominated the basket of foreign currency receipts, accounting for 55,9 percent of the total inflows in the period leading up to May 2025 highlighting the significant role that exports play in driving Zimbabwe’s foreign exchange earnings.
Loans and credit facilities followed, contributing 18,4 percent to the foreign currency basket while diaspora remittances accounted for 15,4 percent of the total foreign currency receipts.
According to the RBZ, the country has maintained a steady receipt of foreign currency, which has been sufficient to meet its external payment obligations.
Notably, the inflows have not only been able to meet its external payment obligations but have been able to leave a sizeable surplus.
This surplus indicates a positive trend in Zimbabwe’s foreign exchange position, providing the country with a buffer to manage its external financial obligations and potentially allocate excess funds towards strategic economic priorities.
These statistics reveal that from January to May 2025, Zimbabwe’s foreign currency receipts averaged approximately US$1,2 billion per month, significantly exceeding the country’s external payments, which averaged around US$821 million per month.
On the other hand, the surplus, which averaged US$378 million per month, for the months from January to May 2025, was crucial in supporting domestic transactions and contributing to the accumulation of foreign currency reserves.
Sufficient foreign currency reserves are essential for stabilising the currency, meet future external obligations and enhance the country’s overall economic resilience.
“The country has continued to receive foreign currency enough to cover its external payment obligations, leaving a sizeable surplus. The country’s foreign currency receipts have continued to amounting to US$6,0 billion during the months of 2025 compared to US$4,9 billion for the same period in 2024. Foreign currency receipts averaged US$1,2 billion per month against external payments of around US$821 million per month from January to May 2025,” said RBZ governor Dr John Mushayavanhu.
RBZ revealed this in second quarter snapshot update on recent monetary, currency, price and financial developments.
The announcement is in line with the central bank’s commitment in the February 2025 Monetary Policy Statement, to use Communication as an effective tool for implementing monetary policy.
Economist, Mr Godfrey Kanyenze, said the rise in foreign currency inflows to US$6 billion over the first five months of 2025 is extremely important for Zimbabwe’s economic health.
“These additional dollars help to rebuild our net international reserves, which in turn support confidence in domestic ZiG currency. Stronger mineral export earnings reduce the Government’s reliance on volatile portfolio and concessional financing, giving the Reserve Bank greater scope to defend the local unit and manage liquidity.
“At the same time, higher remittances bolster household consumption and small business activity, especially in rural and peri-urban areas where formal banking channels are thin. Together, these inflows enhance macro stability by containing inflationary pressures and strengthen livelihoods at the community level, underpinning both demand and trade activity across the country,” said Mr Kanyenze.
Economist, Professor Albert Makochekanwa, said he projects growth in foreign currency receipts in 2025 on the back of an increase in gold production.
“The mining sector is generally expecting gold exports to surpass the total of last year. So, I believe the country will earn more foreign currency compared to the previous year.
“If mineral prices remain buoyant and remittances continue on their current trajectory, I anticipate full year foreign currency receipts to grow extensively,” said Prof Makochekanwa.
Analyst predict full year foreign currency receipts could reach approximately US$14 to 15 billion in 2025.
This projection assumes that key minerals, particularly platinum and lithium sustain year on year price gains of 20–25 percent yielding around US$9 to US$10 billion from mineral exports and that remittances grow at an annualised rate of 15–18 percent, contributing roughly US$4 to 4,5 billion and that other export sectors, such as agriculture and manufacturing, recover modestly to add about US$1 billion.
These developments come as Zimbabwe exported gold worth US$748 million from January to May 2025 which is 24 percent more than in the same period last year.
RBZ second Quarter 2025 update report builds on the first quarter report released in April 2025, which offered an overview of key monetary and economic developments during the period.
The report primarily focuses on high-frequency indicators that gauge the effectiveness of monetary policy in the economy, providing insights into the impact of policy decisions on Zimbabwe’s economic landscape.
These developments come as the central bank maintained a tight monetary policy stance in response to evolving developments and emerging risks to global growth prospects to maintain stability in the economy, during the second quarter.
Additionally, the bank continued to modernise its monetary policy framework by progressively transitioning to indirect instruments for open market operations (OMO), aiming to enhance the effectiveness of its policy interventions.
Colletta Dube