Zimbabwe targets $1 billion reserves

Published: 3 hours ago

The Reserve Bank of Zimbabwe (RBZ) has announced that the country’s foreign currency reserves are expected to surpass the US$1 billion mark by the end of 2025, a key milestone in the central bank’s plan to strengthen the ZiG as the dominant local currency.

Speaking at the 11th Annual CEO Africa Roundtable Conference in Victoria Falls, Acting Governor Dr Jesimen Chipika highlighted the central bank’s aggressive accumulation of reserves, which have grown from US$276 million in April 2024 to over US$900 million as of September 2025. At this level, foreign currency reserves cover the ZiG reserve money more than four times, providing the RBZ with significant leverage to stabilise exchange rates.

"With sufficient reserves, the RBZ has enough firepower to intervene in the foreign exchange market to smooth volatile conditions and ensure sustained stability," Dr Chipika said. She emphasized that building a strong reserve base is essential for instilling confidence in the ZiG and supporting the gradual transition to a mono-currency system.

On the inflation outlook, the Acting Governor projected a significant decline from the current annual ZiG inflation rate of 82.7 percent, largely driven by a one-off price spike in October 2024. She said annual inflation is expected to fall to between 20 and 30 percent by year-end 2025, with a further reduction to single digits in the short term. This trajectory aligns with government targets of achieving double-digit inflation by the end of the year.

Dr Chipika underscored that the eventual transition to a ZiG-dominated economy will be market-led and conditional on achieving macroeconomic stability, including sufficient foreign currency reserves to cover three to six months of imports and maintaining low and stable inflation within the 3–7 percent range.

"Creating a solid foundation for the ZiG through fiscal prudence, reserve accumulation, and inflation control remains our top priority," she said, highlighting the central bank’s commitment to steering the economy toward lasting stability.

The announcement signals a significant boost to investor and public confidence, demonstrating Zimbabwe’s ongoing efforts to stabilise the financial system and reinforce the local currency amidst broader economic reforms.
- the herald

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