ZiG Stability Spurs Economic Confidence as RBZ Targets 6% Growth in 2025

By Takudzwa Tondoya

The Reserve Bank of Zimbabwe (RBZ) has reaffirmed its commitment to price and exchange rate stability, following the release of its Mid-Term Monetary Policy Statement which projects a significant rebound in economic growth to 6% for the year.

The recovery, a sharp rise from 1.7% in 2024 is being driven by increased agricultural output, mining sector performance and growing use of the local currency, the Zimbabwe Gold (ZiG), which was introduced in April 2024.

According to the statement, macroeconomic stability has been underpinned by firm monetary discipline, tight liquidity controls and rising foreign currency reserves which more than doubled from US$285 million in April 2024 to over US$730 million by June 2025.

“The Reserve Bank has consistently walked the talk and stayed the course of anchoring price, currency, and exchange rate stability,” said the Bank, citing its recalibrated 30-day non-negotiable certificates of deposit (NNCDs) and curtailed early redemptions as effective tools to manage liquidity.

ZiG monthly inflation averaged just 0.6% from February to July, with July recording a slight uptick to 1.6% due to a spike in rental costs.

Annual inflation, which surged to 95.8% in July due to base effects from 2024, is forecast to slow to 30% by December.

The ZiG’s share of digital payments rose from 26% in April 2024 to 40% by mid-2025 reflecting growing public trust.

Concurrently, foreign currency inflows hit US$7.2 billion in the first half of 2025 a 23% increase over the same period in 2024 helping maintain a relatively stable exchange rate on the Willing Buyer Willing Seller (WBWS) market.

RBZ Governor Dr. John Mushayavanhu said the strong monetary policy stance will continue in the next six months, supported by consistent communication and stakeholder engagement.

The Bank also noted improved banking sector performance, with total assets reaching ZiG191.8 billion and non-performing loans falling to 2.9%, well within international benchmarks.

With rising confidence in the local currency and ongoing reforms, the central bank appears poised to balance growth and stability a delicate act critical to the country’s economic revival.