Business Reporter
DEPUTY Reserve Bank of Zimbabwe governor Innocent Matshe recently told at a 2025 Economic Review and 2026 Outlook meeting held in Bulawayo that the ZWG has strengthened significantly making it a better option as a store of value.
He underscored that the ZWG is sustaining positive real interest rates, which he described as vital for preserving value and stimulating investment growth.
“You are safer saving in ZWG than in USD,” he asserted.
“Single-digit inflation means a return to enduring stability. Month-on-month ZWG inflation averaged around 0,3% since February 2025, reflecting enduring price stability. Annual ZWG inflation declined from a peak of 95,8% in July 2025 to 4,1% in January 2026 and the Reserve Bank will continue implementing prudent monetary policies to sustain this trajectory.”
Addressing concerns about the security of foreign currency holdings, he indicated that the stabilisation process does not mean the banking public will lose their US dollar deposits.
“They will keep them and still make use of them,” he maintained.
He noted that the foundation for the ZiG’s stability is strengthening, revealing that foreign currency reserves have climbed to US$1,2 billion by December 2025.
This level is sufficient to cover about six times the stock of ZiG reserve money and roughly double ZiG deposits.
“The build-up of foreign currency reserves is critical for the lasting stability of ZiG,” Matshe said.
He highlighted a 21,8% increase in the country’s foreign currency generation capacity, which reached US$16,2 billion in 2025, up from US$13,3 billion in 2024.
“Export earnings dominated the basket… averaging 59,7% of total foreign currency receipts in 2025, followed by loan proceeds at 14,8% and diaspora remittances at 13,5%.”
The central bank governor projected further growth in 2026, citing improved prices for key export minerals and rising remittances.
The ZiG exchange rate has remained stable against the US dollar, averaging 26,61.
The parallel market premium was contained below 20% for most of the year, aided by foreign exchange market interventions totalling US$1,34 billion since April 2024, according to RBZ.
