Story by Owen Mandovha
HARARE – THE Reserve Bank of Zimbabwe (RBZ) says it has successfully contained inflation within its targeted range, as evidenced by consistently low month-on-month inflation figures, while assuring the nation of continued price stability in the long term.
Speaking to the media, RBZ Governor Dr John Mushayavanhu said the high annual inflation figures currently being recorded are largely inconsequential, attributing them to what he termed “lived inflation.”
He said these figures are temporarily distorted due to the base effect of the newly introduced Zimbabwe Gold (ZiG) currency and an isolated inflationary shock experienced in September 2024.
“The ZiG was introduced as a new currency in April 2024 and there was no base to calculate annual inflation figures up until May this year when 12 months lapsed. The high inflation figures are a result of what you call the base effect of a new currency and also the once shock September 2024 effect which saw a spike in prices. But overall the nation should expect a low annual inflation figures from around September 2025 which will provide a real picture of our inflation figures which will drastically come down,” Dr Mushayavanhu said.
Dr Mushayavanhu further emphasised that the Zimbabwe Gold currency is underpinned by strong fundamentals, particularly the country’s growing gold reserves.
“I want to assure the nation that the ZiG is here to stay. Our reserves have grown at an unprecedented rate from US$257 million to just under US$700 million within a year of the ZiG’s introduction,” he said.
The RBZ’s tight monetary policy stance, underpinned by a “back-to-basics” approach, continues to bear fruit as market confidence improves.
The central bank has also fine-tuned its exchange rate management framework in line with market expectations, ensuring that the domestic currency remains stable and credible.
