Story by Stanley James, Business Editor
HARARE – THE Reserve Bank of Zimbabwe (RBZ) is satisfied with the price and exchange rate stability after the implementation of various interventions that have also seen the country recording over US$5 billion in foreign currency inflows since January.
The RBZ on Wednesday released its quarterly economic report on monetary, price, and financial stability, highlighting key achievements including growth in reserves backing the Zimbabwe Gold (ZiG) currency, stable prices, a steady bank policy rate, growing demand for the local currency, and a stable interbank foreign exchange market.
The central bank attributed the over US$5 billion in foreign currency inflows between January and May this year to strong export performance, diaspora remittances, and support from development partners.
Economists have lauded the RBZ’s efforts in restoring macroeconomic fundamentals and enhancing market confidence.
“There is that element of a huge return to macro-economic fundamentals as evidenced by the statistics from the central bank and the situation on the ground points to stable economic conditions that are vital towards increased market confidence,” Economist, Dr Zack Murerwa said.
The private sector is also welcoming stability, with the Confederation of Zimbabwe Industries (CZI) noting that businesses are now able to plan more effectively.
“Industry and commerce need to plan accordingly and in an economy with stable conditions it becomes easier to plan as well as project on the future of businesses, an element that is vital towards further strengthening business ability to continue operating and attracting domestic and external investors,” CZI Chief Executive Officer Mrs Sekai Kuvarika said.
The Central Bank further highlighted the growing public and institutional acceptance of the ZiG currency, which is backed by gold and other reserves.
The report notes a steady decline in market volatility, driven by confidence in the newly introduced structured currency.
Monetary authorities anticipate continued macroeconomic resilience, bolstered by a drop in inflation, a rebound in global commodity prices, and steady economic growth.
The report is expected to guide further policy interventions as Zimbabwe pushes towards sustained economic recovery under the National Development Strategy 1 (NDS1) framework.
