RBZ 2nd quarter financial highlights exhibit strong currency stability, economic resilience

The Reserve Bank of Zimbabwe (RBZ) has published its 2nd Quarter Monetary and Financial Highlights, demonstrating strong performance in inflation management, foreign reserves, and the continued stability of the gold-backed ZiG currency.

Inflation Under Control
According to the RBZ, monthly inflation dropped sharply to 0.3% in June 2025, down from 0.5% in May.

Since February, inflation has averaged just 0.5%, a signal that the ZiG is holding its value and maintaining consumer purchasing power.

The central bank remains confident that this trend will continue, aiming for a year-end inflation rate of 3.0% by December 2025.

Foreign Reserve Growth Anchors ZiG Stability
Foreign currency reserves rose from US$630 million in Q1 to US$731 million in Q2, with gold reserves more than doubling from 15 tonnes in April 2024 to 34 tonnes in June 2025.

These reserves now exceed the entire stock of ZiG deposits, a major anchor for maintaining currency stability and public confidence in the local unit.

Foreign Currency Inflows Surge

Zimbabwe generated US$6 billion in foreign currency from January to May 2025, a sharp increase from US$5.4 billion in the same period last year.

These inflows are being used for both import requirements and reserve building, further strengthening the ZiG’s backing and the country’s external position.

Monetary Tightening Supports Stability
The RBZ has maintained a tight monetary policy stance, effectively managing liquidity and preserving financial system stability. The Bank Policy Rate remained at 20%, while the statutory reserve ratio for demand deposits was maintained at 15%.

The Medium-Term Lending Facility (MTLF) and the Productive Sector Facility (PSF) have supported productive sectors, contributing to manufacturing and agriculture growth of 4.82% and 3.47%, respectively.

What This Means for Zimbabweans
-Strong reserves ensure foreign currency availability for essentials like fuel, medical supplies, and strategic imports through platforms like the Willing Buyer-Willing Seller system.

-ZiG remains protected, giving confidence to depositors and businesses that the local currency retains value amid external shocks.

-Stable inflation and growing reserves translate into greater price predictability and improved confidence in the monetary system.

With inflation slowing, reserves rising, and confidence returning, the RBZ’s Q2 update provides encouraging signs that Zimbabwe’s economic fundamentals are strengthening under the stewardship of the central bank.

Zwnews