Harare, (New Ziana) — The Reserve Bank of Zimbabwe (RBZ) says sustained price and exchange rate stability recorded in the fourth quarter (Q4) of 2025 underscores the effectiveness of its prudent monetary policy framework, anchored on tight money supply management and enhanced policy coordination.
In its Q4 2025 Quarterly Economic and Monetary Developments Snapshot, the central bank said the report reflects its commitment to transparency by providing the public with regular updates and high-frequency indicators that inform its monetary policy stance.
The RBZ attributed the current macroeconomic stability to optimal control of reserve money, greater exchange rate flexibility under the Willing-Buyer Willing-Seller arrangement, consistent accumulation of foreign currency reserves backing the Zimbabwe Gold (ZiG) currency, and strengthened coordination between monetary and fiscal authorities.
“These developments demonstrate a decisive break from past policy inconsistencies, with monetary policy now regaining trust, confidence and credibility,” it said.
Among the notable achievements in 2025 was the sustained dissipation of ZiG annual inflation, which ended the year at 15 percent—well below the 30 percent target. Month-on-month inflation also remained stable, averaging 0.4 percent from February to December 2025.
Exchange rate stability, said the apex bank was maintained throughout the year, with the interbank rate oscillating around ZiG26 to the United States dollar, while the parallel market premium was largely contained below 20 percent.
The central bank said reserve money growth was kept under tight control, amounting to ZiG5.3 billion by end-December 2025, while there was zero central bank financing of Government expenditure, reinforcing fiscal discipline.
Foreign currency inflows continued to strengthen, with receipts rising to US$16.2 billion in 2025 from US$13.3 billion in 2024. This supported steady accumulation of foreign reserves, which reached US$1.2 billion as at 31 December 2025, equivalent to 1.5 months of import cover.
The RBZ noted that foreign currency reserves now back the local currency by about six times the cover of ZiG reserve money and almost double the total ZiG deposits in the banking system.
Use of the ZiG also increased significantly, accounting for about 30 to 40 percent of total national payment system transactions. Currency in circulation rose to ZiG510 million, representing around 3 percent of broad money.
Meanwhile, the financial sector and national payment system remained sound, resilient and stable, providing a solid foundation for continued economic activity.
The central bank said these achievements have gone a long way in satisfying the conditions precedent outlined in the National Development Strategy 2 (NDS2) roadmap towards a mono-currency regime, which prioritises macroeconomic stability and financial sector deepening as key pillars for the attainment of Vision 2030.
“The Quarterly Snapshot report therefore represents the RBZ’s official communication on monetary policy management and its impact on inflation and output,” it said.
New Ziana
