Nhau News Online News that is accurate, reliable, trustworthy!!
The Reserve Bank of Zimbabwe (RBZ) has delivered a cautiously upbeat assessment of the country’s economic performance, citing falling inflation, a firmer local currency, and rising foreign currency receipts as signs of improving fundamentals.
The update was shared in the central bank’s Quarterly Economic Snapshot for Q2 2025, released Tuesday, which highlighted a more stable macroeconomic environment on the back of tighter monetary controls and coordinated fiscal efforts.
According to the report, Zimbabwe’s monthly inflation measured in ZiG dropped to 2.4% in June from 6.9% in May—its lowest level since the ZiG currency was introduced in 2024. On an annual basis, inflation stood at 18.2%, a development the RBZ attributed to base effects from the currency transition period last year.
“The sustained decline in monthly inflation reflects the effectiveness of our current monetary policy stance and the relative stability of the exchange rate,” the RBZ noted. “We remain focused on consolidating price stability through disciplined policy execution.”
Foreign currency inflows registered a solid increase, reaching US$5.13 billion in the first six months of 2025—up from US$4.61 billion during the same period in 2024. Export earnings, diaspora remittances, and donor support were identified as the key contributors to this rise.
During the same period, outflows amounted to US$4.89 billion, resulting in a positive balance of payments position.
On the exchange rate front, the interbank rate averaged ZiG26.85 to the US dollar in June, a development the RBZ says is encouraging. The narrowing of the parallel market premium also points to reduced speculative behaviour and a return of market confidence.
“The foreign exchange market has shown commendable progress, with improved convergence between official and alternative rates,” the report stated. “This helps rebuild predictability and supports recovery efforts.”
The Real Effective Exchange Rate (REER), a measure of the country’s trade competitiveness, remained within acceptable ranges, according to the bank.
RBZ also noted that foreign currency deposits now account for over 84% of broad money supply, while reserve money growth remains contained. The bank expressed optimism that the second half of 2025 will be characterised by further macroeconomic stability, driven by strong external sector performance and continued monetary discipline.
