Staff Reporter

President Emmerson Mnangagwa, today, reaffirmed the Government's commitment to stabilising the economy, with currency stabilisation being a top priority.

Speaking during his State of the Nation Address (SONA) at the New Parliament Building in Mt Hampden, Harare, the President emphasised the importance of macroeconomic stability, highlighting key measures taken to address foreign exchange pressures and inflation.

"Currency stabilisation is at the core of macro-economic stability," President Mnangagwa stated.

He pointed to the adoption of the Zimbabwe Gold (ZiG) in April 2024 as a significant step towards stabilising the domestic currency, noting that the currency is now anchored by the country's gold and precious metal reserves.

The President urged the nation to respect and adhere to economic measures designed to maintain stability and curb inflation.

He said that in an effort to address increasing foreign currency pressures, the Reserve Bank of Zimbabwe (RBZ) introduced greater flexibility under the willing-buyer, willing-seller arrangement.

"The increased flexibility on the foreign exchange market is expected to further promote effective price discovery and encourage holders of foreign exchange to participate in the willing-buyer willing-seller market," the President said.

He added that the Government remains committed to backing the currency through setting aside 50% of royalties to build reserves.

President Mnangagwa also reported a positive increase in foreign currency inflows from exports, which rose from US$7 billion in 2023 to US$8 billion in 2024, signalling stronger export performance.

Additionally, he commended the banking sector's stability, noting that it remains well-capitalised and liquid, with profitability, asset quality, and liquidity metrics remaining stable.

However, the President expressed concern over the resurgence of parallel market activities, driven by speculative tendencies, and assured the nation that corrective measures were being implemented to protect citizens from economic disruptions.

"Together, let us lay a solid foundation for economic prosperity, peaceful development, and freedom from undue external interference," President Mnangagwa urged.

Political commentators have responded positively to the President’s address, praising the Government's efforts to stabilise the economy.

Economist Persistence Gwanyanya commended the President's focus on currency stabilisation, saying, "The adoption of the Zimbabwe Gold (ZiG) was a masterstroke. Anchoring the currency on gold reserves is a strategic move to protect the local currency from speculative attacks and foster long-term stability."

Another analyst, Victoria Masango, noted that the flexibility in the foreign exchange market would enhance market confidence.

"Allowing for greater participation in the willing-buyer willing-seller market is a step towards transparency and stability in foreign exchange rates, which is vital for both businesses and consumers," she said.

As Zimbabwe faces ongoing economic challenges, President Mnangagwa's address provided a clear outline of the Government's approach to securing economic stability and promoting sustained growth.