Zimbabwe’s Forex Reserves Surge to US$900m, Edging Closer to Billion-Dollar Mark

Zimbabwe’s foreign currency reserves have climbed to US$900 million, buoyed by a surge of US$2.2 billion in foreign currency inflows, the Reserve Bank of Zimbabwe (RBZ) revealed after its Monetary Policy Committee (MPC) meeting on Friday, 26 September 2025.

The new figures mark a significant milestone for the country’s stabilisation efforts, leaving reserves just US$100 million shy of the US$1 billion threshold. The central bank described this position as critical in anchoring exchange rate stability and strengthening the current account balance.

According to the RBZ, the strong inflows were largely supported by robust export earnings, with gold and tobacco remaining the key drivers. Between January and August 2025, foreign currency inflows reached US$10.4 billion, up from US$8.2 billion during the same period last year.

In a statement signed by Governor Dr. John Mushayavanhu, the MPC said the improved performance was underpinning a strong current account surplus, projected to widen to US$1.3 billion. The bank also credited sustained reserve accumulation and tight money supply management for the continued exchange rate stability observed since September 2024.

Inflationary pressures remain subdued, with month-on-month inflation for the Zimbabwe Gold (ZiG) currency averaging 0.6 percent between February and August this year. Annual ZiG inflation is now forecast to fall towards 20 percent by December 2025, well below the central bank’s initial 30 percent target.

Against this backdrop, the MPC resolved to maintain its current monetary policy stance. The Bank Policy Rate remains at 35 percent, while statutory reserve requirements for both ZiG and foreign currency deposits are unchanged at 30 percent.