Addressing journalists recently, RBZ Governor, Dr.John Mushayavanhu said the Central Bank had managed to keep month-on-month inflation figures low and within target, reflecting effective monetary discipline and growing market confidence.
“We have successfully contained inflation on a month-to-month basis. What the public is seeing, in the high annual inflation figures, is what we call ‘lived inflation’ that is a temporary distortion caused by the base effect of introducing the new Zimbabwe Gold (ZiG) currency,” said Dr Mushayavanhu.
The ZiG currency, introduced in April 2024 to anchor price and monetary stability, is backed by Zimbabwe’s increasing gold reserves and was part of the central bank’s broader reforms aimed at restoring public confidence in the local currency.
“The ZiG is here to stay. Our gold and foreign currency reserves have grown from US$257 million to just under US$700 million in less than a year, giving the new currency a solid foundation,” Dr Mushayavanhu declared.
He explained that the seemingly elevated annual inflation numbers were also a result of an isolated inflationary spike in September 2024, but said this should not be a cause for concern.
“By September 2025, we expect the annual inflation figures to reflect the actual situation on the ground, and they will drop significantly. What we are seeing now is not representative of the overall inflation trend,” he added.
Under the stewardship of Dr. Mushayavanhu, the RBZ has adopted a “back-to-basics” monetary policy, which prioritises fiscal discipline, exchange rate stability, and confidence-building measures. This strategy, he said, has already started delivering results.
The bank has also enhanced its exchange rate management system to align more closely with market expectations, ensuring transparency and credibility in how the local currency is valued.
“Our monetary policy stance remains tight and focused on long-term price stability. We are confident that inflation will remain low and stable going forward,” Dr. Mushayavanhu concluded.
The RBZ’s statements come at a critical time, as Zimbabweans continue to adjust to the ZiG and seek assurance that recent economic reforms will deliver lasting financial security and economic growth.
