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Zimbabwe's gold reserves surge past 4,5 tonnes
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Zimbabwe's gold reserves have surpassed 4.5 tonnes while foreign currency receipts reached a record US$10.72 billion during the first six months of 2026, providing stronger backing for the Zimbabwe Gold (ZiG) currency and reinforcing macroeconomic stability, according to the Reserve Bank of Zimbabwe (RBZ).
The figures are contained in the RBZ's Quarterly Snapshot on Recent Monetary, Currency, Price and Financial Developments for the second quarter of 2026, released on Thursday.
Foreign currency receipts rose by 47.8 percent from US$7.25 billion recorded during the corresponding period last year, marking the highest inflows ever recorded in Zimbabwe. The increase reflects stronger export earnings, diaspora remittances and other foreign exchange inflows.
The RBZ said the country's gold reserves, which form part of the assets backing the ZiG, had continued to grow, strengthening confidence in the local currency and improving Zimbabwe's ability to withstand external economic shocks.
The central bank also reported that foreign currency reserves had increased to US$1.6 billion by the end of June, enough to provide 1.6 months of import cover.
According to the RBZ, the reserves are sufficient to cover about six times the stock of ZiG reserve money and approximately one-and-a-half times total ZiG deposits.
"The Reserve Bank continued with the accumulation of foreign currency reserves backing the ZiG during the quarter ending June 2026," the report said.
"Foreign currency reserves increased to US$1.6 billion in June 2026, sufficient to cover about six times the stock of ZiG reserve money and about 1.5 times the ZiG deposits.
"The build-up of foreign currency reserves is critical for the lasting stability of the ZiG currency."
The report also highlighted growing public use of the ZiG, with about 40 percent of all transactions processed through Zimbabwe's national payment system now being conducted in the local currency.
The RBZ said the increased use of the ZiG reflected growing public confidence and supported efforts to reduce dependence on foreign currencies for domestic transactions.
"Zimbabwe has maintained a relatively high proportion of ZiG usage in the economy to around 40 percent of total national payment system transactions," the report noted.
The central bank attributed the country's continued macroeconomic stability to prudent monetary policy, saying inflation expectations had become increasingly anchored despite global economic headwinds.
"The continued macroeconomic stability during the second quarter of 2026 was underpinned by prudent monetary policy management.
"The increased stability has resulted in inflation expectations becoming more anchored and the Reserve Bank will continue to pursue prudent monetary policy measures that promote price stability while supporting sustainable economic growth," the report said.
Annual ZiG inflation stood at 4.72 percent at the end of June, remaining below five percent despite higher international oil prices linked to conflict in the Middle East. Month-on-month inflation averaged just 0.47 percent during the first half of the year.
The RBZ said well-anchored inflation expectations had helped cushion the economy from global fuel price pressures.
"Annual ZiG inflation remained low and stable at 4.7 percent in June 2026, despite high international oil prices due to the Middle-East conflict.
"Better-anchored inflation expectations helped shield the economy from the recent global oil price shock," the report said.
Reflecting the improved inflation outlook, the Monetary Policy Committee reduced the Bank Policy Rate from 35 percent to 30 percent in June.
The RBZ said the decision was not intended to loosen monetary policy but represented "a recalibration of the Policy Rate to the structural shift in inflation dynamics."
The central bank expects lower borrowing costs to encourage productive investment while maintaining price stability.
The report also showed that the ZiG exchange rate remained broadly stable throughout the second quarter, trading between ZiG25 and ZiG27 against the United States dollar, while the parallel market premium remained below 20 percent.
Foreign exchange inflows continued to outpace external payment obligations, with Zimbabwe receiving US$10.72 billion in foreign currency compared with external payments of US$7.3 billion during the first half of the year.
According to the RBZ, exports accounted for 70.3 percent of foreign currency receipts, followed by diaspora remittances at 14.4 percent and loan proceeds at 9.2 percent.
"Higher exports of tobacco and favourable prices for gold, PGMs, and lithium drove export performance," the report said.
RBZ Governor John Mushayavanhu said the central bank would continue pursuing prudent monetary policies to safeguard stability.
"The prudent monetary policy stance, coupled with proactive Government interventions in the fuel sector, has helped the country to weather the inflationary impact of the recent oil price shock.
"The Reserve Bank will continue to calibrate the monetary policy stance in line with the evolution of macroeconomic fundamentals to support the country's inflation and growth objectives," he said.
The figures are contained in the RBZ's Quarterly Snapshot on Recent Monetary, Currency, Price and Financial Developments for the second quarter of 2026, released on Thursday.
Foreign currency receipts rose by 47.8 percent from US$7.25 billion recorded during the corresponding period last year, marking the highest inflows ever recorded in Zimbabwe. The increase reflects stronger export earnings, diaspora remittances and other foreign exchange inflows.
The RBZ said the country's gold reserves, which form part of the assets backing the ZiG, had continued to grow, strengthening confidence in the local currency and improving Zimbabwe's ability to withstand external economic shocks.
The central bank also reported that foreign currency reserves had increased to US$1.6 billion by the end of June, enough to provide 1.6 months of import cover.
According to the RBZ, the reserves are sufficient to cover about six times the stock of ZiG reserve money and approximately one-and-a-half times total ZiG deposits.
"The Reserve Bank continued with the accumulation of foreign currency reserves backing the ZiG during the quarter ending June 2026," the report said.
"Foreign currency reserves increased to US$1.6 billion in June 2026, sufficient to cover about six times the stock of ZiG reserve money and about 1.5 times the ZiG deposits.
"The build-up of foreign currency reserves is critical for the lasting stability of the ZiG currency."
The report also highlighted growing public use of the ZiG, with about 40 percent of all transactions processed through Zimbabwe's national payment system now being conducted in the local currency.
The RBZ said the increased use of the ZiG reflected growing public confidence and supported efforts to reduce dependence on foreign currencies for domestic transactions.
"Zimbabwe has maintained a relatively high proportion of ZiG usage in the economy to around 40 percent of total national payment system transactions," the report noted.
The central bank attributed the country's continued macroeconomic stability to prudent monetary policy, saying inflation expectations had become increasingly anchored despite global economic headwinds.
"The continued macroeconomic stability during the second quarter of 2026 was underpinned by prudent monetary policy management.
"The increased stability has resulted in inflation expectations becoming more anchored and the Reserve Bank will continue to pursue prudent monetary policy measures that promote price stability while supporting sustainable economic growth," the report said.
Annual ZiG inflation stood at 4.72 percent at the end of June, remaining below five percent despite higher international oil prices linked to conflict in the Middle East. Month-on-month inflation averaged just 0.47 percent during the first half of the year.
The RBZ said well-anchored inflation expectations had helped cushion the economy from global fuel price pressures.
"Annual ZiG inflation remained low and stable at 4.7 percent in June 2026, despite high international oil prices due to the Middle-East conflict.
"Better-anchored inflation expectations helped shield the economy from the recent global oil price shock," the report said.
Reflecting the improved inflation outlook, the Monetary Policy Committee reduced the Bank Policy Rate from 35 percent to 30 percent in June.
The RBZ said the decision was not intended to loosen monetary policy but represented "a recalibration of the Policy Rate to the structural shift in inflation dynamics."
The central bank expects lower borrowing costs to encourage productive investment while maintaining price stability.
The report also showed that the ZiG exchange rate remained broadly stable throughout the second quarter, trading between ZiG25 and ZiG27 against the United States dollar, while the parallel market premium remained below 20 percent.
Foreign exchange inflows continued to outpace external payment obligations, with Zimbabwe receiving US$10.72 billion in foreign currency compared with external payments of US$7.3 billion during the first half of the year.
According to the RBZ, exports accounted for 70.3 percent of foreign currency receipts, followed by diaspora remittances at 14.4 percent and loan proceeds at 9.2 percent.
"Higher exports of tobacco and favourable prices for gold, PGMs, and lithium drove export performance," the report said.
RBZ Governor John Mushayavanhu said the central bank would continue pursuing prudent monetary policies to safeguard stability.
"The prudent monetary policy stance, coupled with proactive Government interventions in the fuel sector, has helped the country to weather the inflationary impact of the recent oil price shock.
"The Reserve Bank will continue to calibrate the monetary policy stance in line with the evolution of macroeconomic fundamentals to support the country's inflation and growth objectives," he said.
Source - The Herald
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