Staff Reporter
The Reserve Bank of Zimbabwe (RBZ) has reaffirmed its commitment to economic stability and growth by introducing new monetary policy measures aimed at strengthening the local currency, Zimbabwe Gold (ZiG), and enhancing confidence in the banking sector.
Key initiatives include reducing exporters’ foreign currency retention thresholds, refining foreign exchange management, and encouraging savings through revised interest rates.
Presenting the 2025 Monetary Policy Statement in Harare, yesterday, RBZ Governor Dr. John Mushayavanhu announced a reduction in exporters’ foreign currency retention thresholds to further increase the use of the ZiG.
“To guarantee continued stability in the interbank foreign exchange market through augmenting the supply of foreign currency reserves needed to anchor the ZiG, the foreign currency retention level for exporters has been reduced with immediate effect. This implies that the effective surrender portion of export proceeds has been increased from 25 percent to 30 percent,” said Dr. Mushayavanhu.
This move is expected to ensure that exporters have sufficient local currency to meet their tax obligations and other local expenses, thereby reinforcing confidence in ZiG.
The RBZ has also introduced refinements to foreign exchange trading guidelines to create a more flexible and transparent market.
“To enhance efficiency and improve the price discovery mechanism, the Reserve Bank is further refining and clarifying the Interbank Foreign Exchange Trading guide to authorised dealers. The five percent trading margin, as introduced in the previous guidelines on May 3, 2024, will only apply for determining the starting exchange rate following the introduction of ZiG,” Dr. Mushayavanhu explained.
With these adjustments, monetary authorities seek to ensure stability in the exchange rate and prevent speculative trading, which could destabilise the local currency.
To encourage savings and boost confidence in the banking sector, the RBZ has reviewed interest rates on savings and time deposits upwards.
“Considering recent stakeholder concerns and the need to reward depositors, the minimum interest rates for savings and time deposits in both ZiG and USD have been reviewed upwards with immediate effect,” the governor announced.
This measure is aimed at encouraging individuals and businesses to place their funds in interest-bearing savings accounts rather than non-interest-bearing accounts, thereby fostering a culture of saving and investment.
The latest monetary policy adjustments signal RBZ’s commitment to economic stability through a combination of exchange rate management, banking sector confidence, and local currency strengthening.
Key takeaways from the policy include boosting ZiG circulation by raising the export surrender requirement, which increases local currency flow, while inflation is controlled through foreign reserves accumulation and tight liquidity management; additionally, easing foreign exchange restrictions fosters a more flexible, transparent market, the bank policy rate remains stable at 35 percent per annum to ensure cautious liquidity management, and maintaining a multi-currency system allows businesses and consumers continued access to USD and other foreign currencies alongside ZiG.
With these bold measures, the RBZ is setting a clear path for economic stability and growth.
By increasing the use of the ZiG, refining foreign exchange management, and incentivising savings, the central bank is laying the groundwork for a stronger and more resilient financial system.
While challenges remain, these policy interventions reaffirm that Zimbabwe’s monetary authorities are actively working to bolster confidence and promote sustainable economic progress.
