Zim’s Foreign Reserves Surge as RBZ Doubles Gold Holdings Backing ZiG

By Takudzwa Tondoya

The Reserve Bank of Zimbabwe (RBZ) has more than doubled its gold reserves backing the local currency, the ZiG signaling a notable step toward currency stability and economic confidence.

According to the RBZ’s Q2 Monetary and Financial Highlights released this week, gold reserves rose from 1.5 tonnes in April 2024 to 3.4 tonnes by the end of June 2025.

This growth was accompanied by an increase in total foreign reserves—from US$630 million in the first quarter to US$731 million in the second quarter of 2025.

The foreign reserves, which include a significant portion held as physical gold, now fully cover the entire stock of ZiG deposits in the banking sector as of 30 June.

This means that every ZiG note or deposit circulating in the economy is matched by equivalent value in foreign currency reserves.

For ordinary Zimbabweans, this translates to potential benefits such as price stability, value preservation and increased confidence in the local currency an important milestone following years of volatility and inflation.

The move also aligns Zimbabwe’s monetary strategy with broader regional trends.

Across Africa, several central banks are shifting toward a hybrid model of foreign currency and gold-backed reserves, seen as a more sustainable approach to managing currency strength and import cover.

Southern African Development Community (SADC) guidelines suggest member states maintain reserves equivalent to at least 3 to 6 months of import cover.

The RBZ said the current monetary stance would remain focused on strengthening the value of the ZiG and rebuilding trust in the financial system.