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Foreign currency inflows surge 48%
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Zimbabwe's economic stabilisation measures are beginning to yield tangible results, with foreign currency receipts reaching record levels and inflation remaining low, pointing to an improving macroeconomic environment.
According to the FBC Securities Economic Snapshot for July, foreign currency receipts surged 47.8% to a record US$10.72 billion in the first half of the year, up from US$7.25 billion during the same period in 2025.
Export proceeds accounted for US$7.53 billion of the total, representing a 90.7% year-on-year increase.
Diaspora remittances also strengthened, rising 41.4% to US$1.55 billion, while foreign direct investment more than doubled to US$269.9 million.
The stronger inflows have provided additional support to the country's external position, with the current account recording a surplus of about US$616 million.
At the same time, inflation in the Zimbabwe Gold (ZiG) currency continued to moderate.
Annual ZiG inflation fell to 3.2% in July from 4.7% in June, while monthly inflation eased to 0.1% from 0.6%.
The latest figures represent a significant improvement from last year, when annual ZiG inflation peaked at 95.8% in July before falling sharply to a three-decade low in January this year.
FBC Securities attributed the low-inflation environment to prudent monetary management, fiscal discipline and relative exchange-rate stability.
The improved foreign currency inflows and more stable prices suggest that some of the government's measures to restore macroeconomic stability are beginning to take effect.
However, the report warned that significant risks remain.
Power shortages, high levels of public debt, climate-related risks and Zimbabwe's heavy reliance on mineral exports continue to expose the economy to potential shocks.
Despite these vulnerabilities, FBC Securities projects the economy to grow by 5% this year.
The outlook will depend on whether the authorities can sustain exchange-rate stability, contain inflation and translate stronger foreign currency inflows into broader economic activity and investment.
According to the FBC Securities Economic Snapshot for July, foreign currency receipts surged 47.8% to a record US$10.72 billion in the first half of the year, up from US$7.25 billion during the same period in 2025.
Export proceeds accounted for US$7.53 billion of the total, representing a 90.7% year-on-year increase.
Diaspora remittances also strengthened, rising 41.4% to US$1.55 billion, while foreign direct investment more than doubled to US$269.9 million.
The stronger inflows have provided additional support to the country's external position, with the current account recording a surplus of about US$616 million.
At the same time, inflation in the Zimbabwe Gold (ZiG) currency continued to moderate.
Annual ZiG inflation fell to 3.2% in July from 4.7% in June, while monthly inflation eased to 0.1% from 0.6%.
The latest figures represent a significant improvement from last year, when annual ZiG inflation peaked at 95.8% in July before falling sharply to a three-decade low in January this year.
FBC Securities attributed the low-inflation environment to prudent monetary management, fiscal discipline and relative exchange-rate stability.
The improved foreign currency inflows and more stable prices suggest that some of the government's measures to restore macroeconomic stability are beginning to take effect.
However, the report warned that significant risks remain.
Power shortages, high levels of public debt, climate-related risks and Zimbabwe's heavy reliance on mineral exports continue to expose the economy to potential shocks.
Despite these vulnerabilities, FBC Securities projects the economy to grow by 5% this year.
The outlook will depend on whether the authorities can sustain exchange-rate stability, contain inflation and translate stronger foreign currency inflows into broader economic activity and investment.
Source - The Herald
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