Zimbabwe’s Foreign Currency Reserves Top US$600 Million as ZiG Gains Stability
HARARE – Zimbabwe’s foreign currency reserves have soared past US$600 million, marking a major turning point in the country’s efforts to stabilise its newly introduced local currency, the Zimbabwe Gold (ZiG), the Reserve Bank of Zimbabwe (RBZ) has announced.
In its March 2025 monetary report, the central bank confirmed that reserves more than doubled from US$270 million recorded in April 2024, when the ZiG was launched as a structured currency to replace the Zimbabwe dollar. The increase in reserves is being hailed by analysts and business leaders as a critical foundation for restoring confidence in the local currency and ensuring economic stability.
The RBZ noted that the current reserves are sufficient to fully back all ZiG bank deposits, reinforcing the structured currency’s credibility and insulating it from speculative attacks and external shocks.
“Huge Milestone” in Monetary Reforms
Commenting on the development, Zachary Tambudzai, Executive Dean of the Faculty of Commerce at Bindura University of Science Education, described the growth in reserves as a “huge milestone” for Zimbabwe’s monetary policy framework.
“It reflects how the central bank is walking the talk by accumulating more reserves to anchor the local currency,” Tambudzai said. “The overall stability we are seeing means monetary authorities are staying the course of prudent systems to secure the ZiG.”
The Confederation of Zimbabwe Industries (CZI) president, Mucha Mukanganwi, also praised the RBZ’s approach, noting that currency stability is vital for industrial planning and growth.
“Industry thrives on certainty. A stable currency that gives direction for future planning is critical,” Mukanganwi said. “The current trend shows that the tight monetary policy is working, and while not everyone may be on board, the RBZ is clearly following through step by step.”
Market Confidence Strengthens
The RBZ report also pointed to a sharp decline in parallel market exchange rate premiums — from over 100% in September 2024 to just 20% by March 2025 — as further evidence of stabilisation. The ZiG has maintained a steady exchange rate of around 33 to 34 ZiG per US dollar in recent months, reflecting improved market sentiment and reduced speculation.
RBZ Governor Dr. John Mushayavanhu, who has championed the structured currency framework, has repeatedly stressed that a reserve-backed monetary policy is essential for long-term economic resilience.
Economists now believe that Zimbabwe may be entering a phase of greater macroeconomic predictability, buoyed by disciplined monetary management and the gradual re-establishment of trust in the financial system.
As inflation remains under control and reserves continue to grow, the ZiG is increasingly being seen as a potential cornerstone for broader economic recovery.
The RBZ has pledged to maintain strict monetary discipline and continue building reserves to ensure the durability and credibility of the ZiG in both domestic and international markets.
— Source: NewsDay
