ZIMBABWE’S efforts to stabilise its currency and strengthen price stability are making notable progress, with foreign currency reserves backing the Zimbabwe Gold (ZiG) surging past US$600 million, a sign that authorities want the local unit to succeed, an expert has said.
According to information from the Reserve Bank of Zimbabwe (RBZ), by the end of March 2025, the country’s reserves had grown from around US$270 million, recorded at the end of April 2024.
This jump in reserves is being hailed as a major step in building confidence in the ZiG, which was launched as a structured currency in April 2024 with RBZ adding that current reserve levels are more than adequate to cover bank deposits.
Experts in the financial and industrial sectors have welcomed the development, describing it as a turning point in Zimbabwe’s monetary policy.
In an interview with NewsDay, the dean of the Faculty of Commerce at Bindura University of Science Education, Zachary Tambudzai, said the steady growth in reserves marked a huge milestone in the history of the structured currency following its launch.
“It reflects how the central bank is walking the talk by accumulating more reserves to anchor the local currency. The overall stability we are seeing means monetary authorities are staying the course of prudent systems to secure the ZiG,” he said.
Industry players have also taken note of the improving currency conditions.
Confederation of Zimbabwe Industries president Mucha Mkanganwi said industry thrived on certainty.
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“A stable currency that gives direction for future planning is critical. The current trend shows that the tight monetary policy is working. While not everyone may be on board with this approach, keeping the policy tight is part of the central bank’s promise to maintain stability and it is following through, step by step,” Mkanganwi said.
According to RBZ, Zimbabwe’s exchange rate has remained relatively stable since October 2024, largely due to an increase in reserves.
Exchange rate premiums have also dropped significantly from over 100% in September last year to just 20% by March 2025. This is reflected in the current parallel market exchange rates, which have stabilised at between 33 and 34 ZiG per US dollar.
