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Zimbabwe says IMF targets on track
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Zimbabwe says it is on course to meet the economic targets agreed with the International Monetary Fund under a 10-month Staff Monitored Program (SMP), as the country seeks to rebuild credibility with international creditors and regain access to global capital markets.
Reserve Bank of Zimbabwe deputy governor Innocent Matshe said the country had met all quantitative targets and made significant progress towards meeting the structural benchmarks agreed under the programme.
"We have met all quantitative targets and made significant progress on meeting the structural benchmarks agreed with the IMF under the ongoing Staff Monitored Program," Matshe said on Thursday.
The SMP, which was approved in April, is an informal IMF arrangement that does not provide Zimbabwe with financial assistance. However, successful implementation could help pave the way for the country to restore access to international credit markets, from which it has been largely excluded since defaulting on its debts in 1999.
Zimbabwe passed the first review of the programme in July.
"Zimbabwe is going to be successful in this program," Matshe told bankers in Harare, stressing the importance of maintaining economic stability.
"The strong commitment of the Reserve Bank and the government to sustaining the prevailing price and exchange rate stability is critical," he said.
An IMF delegation is expected in Zimbabwe from September 7 to 16 to conduct the final assessment of the SMP.
The programme is part of broader efforts by Zimbabwe to re-engage international financial institutions and address longstanding external debt challenges.
Zimbabwe previously operated under an IMF staff-monitored programme in 2019, but the arrangement was abandoned after the country failed to implement key recommendations, particularly those relating to its then Zimbabwean dollar.
Since then, the government has pursued a series of measures aimed at restoring confidence among international creditors and stabilising the economy.
In 2024, Zimbabwe introduced the Zimbabwe Gold (ZiG), a structured currency backed by a basket of reserves including gold and foreign exchange assets. Despite the introduction of the ZiG, the US dollar remains widely used for day-to-day transactions.
Matshe said the government's transition towards a single-currency system would take time and would ultimately be determined by market conditions.
"The transition to a single currency is not going to happen overnight," he said, adding that it "will be market driven."
The successful completion of the IMF programme would give Zimbabwe an opportunity to demonstrate progress on economic reforms and strengthen its case for deeper engagement with international financial institutions as it works towards resolving its debt and financing challenges.
Reserve Bank of Zimbabwe deputy governor Innocent Matshe said the country had met all quantitative targets and made significant progress towards meeting the structural benchmarks agreed under the programme.
"We have met all quantitative targets and made significant progress on meeting the structural benchmarks agreed with the IMF under the ongoing Staff Monitored Program," Matshe said on Thursday.
The SMP, which was approved in April, is an informal IMF arrangement that does not provide Zimbabwe with financial assistance. However, successful implementation could help pave the way for the country to restore access to international credit markets, from which it has been largely excluded since defaulting on its debts in 1999.
Zimbabwe passed the first review of the programme in July.
"Zimbabwe is going to be successful in this program," Matshe told bankers in Harare, stressing the importance of maintaining economic stability.
"The strong commitment of the Reserve Bank and the government to sustaining the prevailing price and exchange rate stability is critical," he said.
The programme is part of broader efforts by Zimbabwe to re-engage international financial institutions and address longstanding external debt challenges.
Zimbabwe previously operated under an IMF staff-monitored programme in 2019, but the arrangement was abandoned after the country failed to implement key recommendations, particularly those relating to its then Zimbabwean dollar.
Since then, the government has pursued a series of measures aimed at restoring confidence among international creditors and stabilising the economy.
In 2024, Zimbabwe introduced the Zimbabwe Gold (ZiG), a structured currency backed by a basket of reserves including gold and foreign exchange assets. Despite the introduction of the ZiG, the US dollar remains widely used for day-to-day transactions.
Matshe said the government's transition towards a single-currency system would take time and would ultimately be determined by market conditions.
"The transition to a single currency is not going to happen overnight," he said, adding that it "will be market driven."
The successful completion of the IMF programme would give Zimbabwe an opportunity to demonstrate progress on economic reforms and strengthen its case for deeper engagement with international financial institutions as it works towards resolving its debt and financing challenges.
Source - Bloomberg
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