'RBZ walks the talk on ZiG'

Zimbabwe's efforts to stabilise its currency and foster price stability are showing significant progress, with foreign currency reserves backing the Zimbabwe Gold (ZiG) surpassing US$600 million, signalling positive momentum for the local currency. According to the Reserve Bank of Zimbabwe (RBZ), by the end of March 2025, the country's reserves had surged from approximately US$270 million recorded in April 2024, marking a crucial step in bolstering confidence in the ZiG.

Launched in April 2024, the ZiG was introduced as a structured currency designed to strengthen the country's monetary system and mitigate inflationary pressures. The RBZ has expressed that the current reserve levels are more than sufficient to cover bank deposits, indicating the central bank's commitment to ensuring the success of the new currency.

Experts in the financial and industrial sectors have lauded the development, with many viewing it as a turning point for Zimbabwe's monetary policy. Zachary Tambudzai, the dean of the Faculty of Commerce at Bindura University of Science Education, highlighted that the steady growth in reserves marked a milestone for the structured currency.

"It reflects how the central bank is walking the talk by accumulating more reserves to anchor the local currency. The overall stability we are seeing means monetary authorities are staying the course of prudent systems to secure the ZiG," Tambudzai said in an interview with NewsDay.

Industry players have also taken note of the improving currency conditions. Confederation of Zimbabwe Industries (CZI) president Mucha Mkanganwi noted that industry thrives on certainty and that a stable currency is essential for future planning.

"A stable currency that gives direction for future planning is critical. The current trend shows that the tight monetary policy is working. 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 it is following through, step by step," Mkanganwi said.

RBZ's recent figures show that Zimbabwe's exchange rate has remained relatively stable since October 2024, thanks to the significant increase in reserves. In addition, exchange rate premiums have dropped dramatically, from over 100% in September 2024 to just 20% by March 2025. This trend is reflected in the parallel market exchange rates, which have stabilised at between 33 and 34 ZiG per US dollar.

The improvement in Zimbabwe's currency situation is being hailed as a positive step towards achieving long-term economic stability. As the country's financial landscape continues to evolve, the strengthening of the ZiG reserve base provides a strong foundation for future economic recovery and growth.