ZIMBABWE’S foreign currency position strengthened markedly in the first half of 2026, with inflows rising 47,8 percent to US$10,72 billion, driven largely by export eaings and diaspora remittances, a development that has enhanced the country’s capacity to meet exteal obligations and support exchange rate stability.
The strong inflows helped lift usable reserves held by the Reserve Bank of Zimbabwe (RBZ) to US$1,7 billion by the end of July, providing a stronger buffer against exteal shocks and supporting interventions in the foreign exchange market.
Presenting the 2026 Mid-Term Monetary Policy Statement (MPS), RBZ Goveor Dr John Mushayavanhu said the robust eaings had strengthened the country’s exteal position, increasing its capacity to meet foreign payment obligations while reinforcing stability in the foreign exchange market.
Foreign currency receipts rose to US$10,72 billion in the six months to June 2026, compared with US$7,25 billion recorded during the corresponding period last year.
Dr Mushayavanhu said the increase was mainly driven by stronger export receipts and growing diaspora remittances, with total 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, export proceeds accounted for the largest share of the increase in foreign currency receipts, rising 90,7 percent to US$7,53 billion from US$3,95 billion during the same period in 2025.
Export eaings represented 70,3 percent of total foreign currency inflows, highlighting the continued importance of the export sector as the economy’s principal source of foreign currency liquidity.
Mining remained the dominant contributor to export growth, with eaings surging 121,3 percent to US$6,21 billion from US$2,81 billion recorded in the corresponding period last year.
Gold continued to anchor the sector’s performance, with export receipts increasing by 176 percent to US$3,82 billion from US$1,38 billion.
Platinum exports generated US$1,46 billion, representing an 82,8 percent increase, while eaings from lithium ore and concentrates rose 78,2 percent to US$382,4 million.
Chrome ore and ferrochrome exports also recorded significant growth, with receipts climbing 60,1 percent to US$239,5 million. Tobacco, another major foreign currency eaer, generated US$967,6 million, up 23,5 percent from US$783,7 million recorded during the same period last year.
According to Dr Mushayavanhu, the strong export performance was complemented by continued growth in diaspora remittances, which increased 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 recorded mixed performances during the review period. Foreign direct investment rose significantly by 126,8 percent to US$269,9 million, while income from foreign investments increased 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-govemental organisations fell 46,1 percent to US$296,6 million.
Meanwhile, the stronger inflow position translated into an improvement in the country’s foreign currency 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 reserve build-up had also been supported by gold purchases and in-kind royalty payments, reflecting the combined impact of foreign exchange generation and reserve accumulation initiatives.
Dr Mushayavanhu said the improved reserve position had enhanced the central bank’s capacity to support the interbank foreign exchange market and meet legitimate foreign payment obligations.
“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 increased foreign currency availability had contributed to exchange-rate stability.
During the first half of 2026, the ZiG-US dollar exchange rate remained relatively stable, trading within a range of ZiG25 to ZiG27 per US dollar, while the parallel market premium averaged about 15 percent.
The strengthening exteal position was also reflected in the current account balance, which widened to an estimated surplus of US$1,3 billion in the first half of 2026, compared with US$248 million during the same period in 2025.
However, the gains in foreign currency eaings have been accompanied by rising demand for foreign exchange as economic activity continues to expand.
Foreign currency payments processed through authorised dealers increased 44,9 percent to US$7,3 billion during the first six months of the year.
Trade-related transactions accounted for 81 percent of total foreign currency payments, with US$2,7 billion, or 37 percent, directed towards the importation of raw materials, intermediate goods and capital equipment.
Fuel imports alone rose 64,6 percent to approximately US$1,4 billion from US$853,5 million recorded in the corresponding period last year, reflecting higher inteational energy prices and increased demand.-herald
