08/08/2025
The Reserve Bank of Zimbabwe has released the 2025 monetary policy. Monetary policy inobatsirei you may ask. It basically controls the well being of the economy.
Things like inflation, interest rates, money supply and prices of goods and services. Paye pamunoti zvinhu zviri kudhura the monetary policy pays a big part.
For example apa zviri kunzi ZiG interest rates are to be kept at a minimum of 5-7% zvichireva kuti pese pauchasaver mari Irish kumaZiG mubank uchawana between 5-7% of interest.
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Hereās a concise summary of Zimbabweās 2025 monetary policy as laid out by the Reserve Bank of Zimbabwe (RBZ) under Governor John Mushayavanhu:
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Key Highlights of Zimbabweās 2025 Monetary Policy
1. Maintaining a Tight Monetary Stance
The bank policy rate remains unchanged at 35%, reflecting a commitment to suppress inflation and stabilize the currency.
The statutory reserve requirements were maintained, reinforcing liquidity control.
2. Boosting Foreign Exchange Reserves and Supporting ZiG
Exporters are now required to surrender 30% of their foreign currency earnings (up from 25%) to bolster ZiG reserves and support the domestic currency.
The interbank foreign exchange framework was improved: limits were lifted, and trading margins refined, allowing better exchange rate discovery and flexibility.
3. Encouraging Deposits and Digital Transactions
Interest rates on both ZiG and USD deposits were raised to incentivize saving:
ZiG: Savings up to 5%; Time deposits up to 7.5%
USD: Savings up to 2.5%; Time deposits up to 4%
To promote financial inclusion and electronic payments:
Businesses must have POS machines for both currencies.
Small POS transactions (below USD or ZiG equivalent) may be exempt from service fees.
4. Targeted Support for Key Economic Sectors
The Targeted Finance Facility (TFF) was introduced to provide funding to productive sectorsālike retail and wholesaleāwithout increasing inflation, using existing bank reserves rather than new money creation.
5. Outlook on Inflation and Growth
Monthly inflation is expected to average below 3%, with annual inflation projected to taper to 20ā30% by year-end.
Economic growth is targeted at 6% in 2025, driven by improvements in agriculture, energy, and broader macroeconomic stability.
6. IMF Assessment and Longer-Term Challenges
The IMF welcomed strides toward macroeconomic disciplineāsuch as halting quasi-fiscal operations and retaining price stabilityābut continues to recommend deeper reforms. These include enhancing foreign exchange transparency, advancing fiscal consolidation, and committing to a transition to a monoācurrency system by 2030.
As of midā2025, the ZiGās usage increased from 26% to 43% of transactions. However, a significant 20% premium remains in the blackāmarket exchange rate, demonstrating persistent confidence gaps.
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Overall, Zimbabweās 2025 monetary policy reflects a deliberate mix of tight monetary control, currency reserve-building, and targeted interventions to stabilize the economy while providing room for strategic growth.
