THE Reserve Bank of Zimbabwe (RBZ) has projected a cautiously optimistic outlook for the country’s economy, citing progress in stabilising inflation, managing exchange rates and boosting foreign currency inflows.
This follows the release on Tuesday of the central bank’s Quarterly Economic Snapshot for the second quarter of 2025.
According to RBZ, Zimbabwe’s monthly ZiG inflation fell sharply to 2,4% in June, down from 6,9% in May.
Annual ZiG inflation stood at 18,2% as of June, a figure the bank attributed to the “low base effect” from the second quarter of 2024, when the ZiG currency was introduced.
“The decline in monthly inflation reflects the effectiveness of tight monetary policy and improved exchange rate stability,” RBZ said.
“We remain committed to maintaining price stability through conservative policy and co-ordinated fiscal support.”
Foreign currency receipts rose to US$5,13 billion in the first half of 2025, up from US$4,61 billion in the same period last year.
The increase is largely driven by export earnings, diaspora remittances and development assistance.
The bank said payments for the same period totalled US$4,89 billion, resulting in a favourable balance of payments position.
The central bank also reported that the interbank ZiG/US$ exchange rate averaged 26,85 in June, showing continued stability, while the parallel market premium narrowed, an indication of growing market confidence.
The Real Effective Exchange Rate remained within equilibrium bands, preserving competitiveness.
“The foreign exchange market has shown notable improvement, with greater alignment between official and alternative rates. This is critical for restoring predictability and supporting economic recovery,” the central bank said.
Economic analysts have welcomed the snapshot, describing it as a “confidence-restoring update” that shows policy traction.
Economist Gerald Mukusha said: “The RBZ has managed to maintain a delicate balance between controlling inflation and allowing enough liquidity in the system. The narrowing parallel market gap is a positive sign of credibility.”
Another analyst, Rumbidzai Madondo, added: “Foreign currency receipts rising while inflation drops is a sign that Zimbabwe’s macroeconomic fundamentals are strengthening. Continued discipline and clear communication from the RBZ will be key.”
With reserve money holding steady and forex deposits now accounting for over 84% of broad money supply, the RBZ said it expected continued macro-economic resilience in the second half of 2025, anchored by monetary discipline, improved liquidity and stronger external sector performance.
