Business Reporter
The Confederation of Zimbabwe Industries (CZI) says the Reserve Bank of Zimbabwe (RBZ) is on track to maintain targeted inflation levels by the end of the year, citing the central bank’s tight monetary policy stance.
The RBZ has retained a high policy rate of 35%, alongside statutory reserve requirements of 15% for savings and time deposits and 30% for demand and call deposits. These measures are aimed at sustaining price, currency and exchange rate stability while supporting the Zimbabwe Gold (ZiG) currency, introduced to curb volatility and restore confidence.
CZI noted that keeping monthly inflation below 1% would strengthen price stability and encourage broader use of ZiG beyond transactions. The group said some businesses that previously relied exclusively on US dollar payments are beginning to accept ZiG, particularly to settle monthly obligations.
However, CZI highlighted that the current annual inflation rate of 93.8% still reflects the September 2024 ZiG devaluation and will only ease from October, provided there are no fresh inflationary shocks.
By contrast, US dollar prices were stable between July and August 2025, after the repeal of Statutory Instrument 81A of 2024 earlier this year, which had been the main driver of dollar inflation. CZI said this stability offers businesses greater predictability in input and output costs.
The industry body also cautioned that the widening gap between official and parallel exchange rates could discourage traders from using formal markets.
