HARARE, Apr.12 (NewsDayLive)- Efforts by monetary authorities to stabilise the local currency Zimbabwe Gold (ZiG) and prices of goods have started bearing fruit with foreign currency reserves backing the Zimbabwe Gold (ZiG) surging past US$600 million, the central bank has said.
According to the latest report released by the Reserve Bank of Zimbabwe (RBZ), by the end of March 2025, the country’s reserves had grown significantly from around US$270 million recorded at the end of April 2024.
The jump in reserves is being hailed as a major step towards building confidence in the ZiG, which was launched as a structured currency in April 2024.
The RBZ noted that current reserve levels are more than adequate to fully cover all ZiG bank deposits.
This means the ZiG is now backed by solid foreign currency assets, shielding it from volatility in the global currency markets.
Experts in the financial and industrial sectors have welcomed the development, describing it as a turning point for Zimbabwe’s monetary policy.
In an interview with the media, executive dean of the faculty of commerce at Bindura University of Science Education, Zachary Tambudzai emphasised that the steady growth in the reserves marked a huge milestone in the domestic structured currency following its launch.
“It reflects how the central bank is walking the talk by accumulating more reserves to anchor the local currency,” Tambudzai said.
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“The overall stability we are seeing means monetary authorities are staying the course of prudent systems to secure the ZiG.”
Industry players have also taken note of the improving currency conditions.
Confederation of Zimbabwe Industries president Mucha Mukanganwi highlighted that industry thrives on certainty.
“A stable currency that gives direction for future planning is critical. The current trend shows that the tight monetary policy is working,” Mukanganwi said.
“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 they are following through, step by step.”
The RBZ further revealed that Zimbabwe’s exchange rate has remained relatively stable since October 2024, largely due to the build-up 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 around 33 to 34 ZiG per US dollar.
As confidence grows and reserves continue to rise, the ZiG appears to be gaining the traction needed to become a cornerstone of Zimbabwe’s economic revival.
