Business Reporter
President Emmerson Mnangagwa on Tuesday praised the Reserve Bank of Zimbabwe’s (RBZ) strict monetary policies, saying they have played a crucial role in maintaining economic stability and promoting growth.
Since taking over as RBZ governor in 2024, Dr. John Mushayavanhu has led the central bank with a firm approach aimed at stabilizing Zimbabwe’s currency, controlling inflation, and ensuring a more predictable exchange rate.
Central to this strategy has been the high bank policy rate, which currently stands at 35%. This measure is designed to curb speculative borrowing—a major factor behind excess liquidity and the illicit parallel market. In addition, the central bank has implemented tighter reserve requirements to further control inflation and support long-term economic growth.
The policy has helped the Zimbabwean dollar (ZWG) maintain stability, with the local currency showing consistent performance over the past year and gaining wider acceptance in the economy.
Speaking during the State of the Nation Address (SONA) on Tuesday, Mnangagwa credited the monetary and fiscal measures for helping sustain economic momentum.
“The tight monetary and fiscal policies in place have been instrumental in supporting sustained economic activity,” Mnangagwa said. “My government is committed to maintaining currency stability and controlling inflation through these policies.”
Looking ahead, the president expressed confidence that macroeconomic stability will continue to be the norm for Zimbabwe. He also highlighted the country’s growing foreign currency reserves as a sign of economic strength.
“As of August 2025, Zimbabwe’s foreign currency inflows reached US$10.4 billion, a 26.8% increase from the US$8.3 billion recorded in 2024. As a result, our foreign currency reserves rose to US$900 million by September 2025, up from US$700 million in June,” Mnangagwa added.
The president also noted that Zimbabwe was recently ranked by the World Bank as one of the top 10 countries globally for significant progress in accumulating foreign currency reserves.
On the fiscal front, Mnangagwa reaffirmed the government’s commitment to strengthening resource mobilization strategies to ensure the effective delivery of public services.
