Published: 22 October 2025

The International Monetary Fund (IMF) has commended Zimbabwe for halting the long-standing practice of printing money to finance government projects - known as quasi-fiscal operations - saying the reform has been crucial in containing inflation and stabilising the exchange rate.

Addressing journalists during the presentation of the regional economic outlook for sub-Saharan Africa at the IMF-World Bank Annual Spring Meetings in Washington DC, IMF African Department Director Mr Abebe Aemro Selassie said Zimbabwe’s "diminished recourse" to central bank financing marked a significant shift in its economic management approach.

"Recourse to central bank financing has diminished quite a bit. It will be important to sustain that because it’s this repeated recourse to central bank financing that has created a lot of difficulties in the past - with inflation, exchange rate volatility, and the difficult foreign exchange environment the country has faced," Selassie said.

He noted that Zimbabwe’s policy shift was beginning to yield tangible results in restoring macroeconomic stability, despite the country’s limited access to concessional financing compared to other regional economies.

"Zimbabwe has gone through quite a lot of challenges in recent years, and one of the things that distinguishes Zimbabwe from other countries in the region has been that they have not been able to access concessional financing to the same degree that others have," Selassie explained.
"Against this difficult backdrop, it has been good to see that the country has been trying to put in place the right policies."

The IMF’s positive assessment comes more than a year after Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu pledged to end the practice of printing money to fund government expenditure.

Upon his appointment, Dr Mushayavanhu vowed to uphold the RBZ Act, focusing strictly on monetary policy and maintaining the independence of the central bank.

"My mandate is monetary policy. I will not participate in activities that fall outside that scope," he said at the time, signalling a decisive break from past practices that contributed to hyperinflation and currency instability.

Economists have welcomed the IMF’s remarks, viewing them as a sign of growing confidence in Zimbabwe’s fiscal discipline and policy reforms aimed at curbing inflation, stabilising the ZWG currency, and rebuilding credibility in the financial system.

The IMF has urged authorities to maintain the current policy trajectory, stressing that sustained restraint on central bank borrowing will be key to achieving lasting economic recovery.
- online

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