Zimbabwe's forex reserves soar to US$900 million

Zimbabwe's foreign currency reserves have reached US$900 million, the Reserve Bank of Zimbabwe (RBZ) announced following its latest Monetary Policy Committee (MPC) meeting on Friday. This marks a substantial increase, propelled by US$2,2 billion in foreign currency inflows, bringing the country close to the US$1 billion milestone.

The MPC highlighted that the robust reserves are vital for sustaining exchange rate stability and supporting the current account balance. The inflows were largely driven by strong performance in the export sector, with gold and tobacco leading contributions. Total foreign currency inflows for the period ending August 31, 2025, reached US$10,4 billion, up from US$8,2 billion during the same period last year.

The improved inflows have also strengthened Zimbabwe's current account surplus, projected to rise to US$1,3 billion. Alongside prudent money supply management, these developments have contributed to continued exchange rate stability since September 2024.

Inflation pressures remain low, with month-on-month inflation for the Zimbabwe Gold (ZiG) currency averaging 0,6 percent between February and August 2025. Annual ZiG inflation is now expected to trend downward toward 20 percent by December 2025, a notable improvement from previous levels. The RBZ has been working toward a 30 percent inflation target.

In light of the positive economic indicators, the MPC decided to maintain the current monetary policy stance, keeping the key rate at 35 percent to ensure continued stability. Statutory reserve requirements for savings, time deposits, and demand and call deposits in both local and foreign currency remain unchanged at 30 percent.

The Reserve Bank's announcement underscores Zimbabwe's progress in economic stabilisation, driven by strong exports, effective monetary policy, and increased foreign currency inflows.