Business Reporter
FINANCE and Investment Promotion Minister, Prof Mthuli Ncube has projected a much stronger ZWG currency in the year ahead attributable to the sustained tight policy stance.
To date , the ZWG has maintained exchange rate stability for over a year since its 43% devaluation marking the longest period of currency stability since 2019 on the back of water tight policies aimed at preserving value.
Presenting the 2026 National Budget, the Finance Minister assured the nation of a much stronger local currency in the coming year.
“In 2026, the ZiG annual inflation rate is projected to decline to single digit levels, with a projected average of 12.1% for the year, reflecting anchored inflation expectations, currency and exchange rate stability, as well as strengthened monetary fiscal policy coordination.
“Similarly, month-on-month US$ inflation averaged 0.1% over the period February to October 2025, while US dollar annual inflation averaged 14.2%,” he said.
Ncube said the sustained deceleration in ZWG inflation in 2025 implies broad price and exchange rate stability, laying a strong foundation for single digit inflation and macroeconomic stability in 2026 and beyond.
He underscored that inflation developments in 2025 reflect the cumulative positive impact of prudent fiscal policy, sustained tight monetary policy and proactive money supply management. Monthly ZiG inflation remained relatively stable, averaging 0.4% during the period February to October 2025.
“ The inflation stability underscores the effectiveness of policies aimed at anchoring inflation expectations and expectations of exchange rate depreciation in the economy.
“On an annual basis, ZiG inflation moderated from 85.7% in April 2025, 95.8% in July 2025 to 32.7% in October 2025, largely reflecting tight monetary policy, currency, and exchange rate stability. Improved domestic food supply further dampened inflationary pressures,” added Ncube.
