Africa-Press – Zimbabwe. The Reserve Bank of Zimbabwe (RBZ) has released its Second Quarter Monetary and Financial Highlights, projecting continued economic stability buoyed by strong foreign currency inflows, increasing reserves, and declining inflation.Zimbabwean wine
According to the bulletin, monthly inflation dropped to 0.3% in June 2025, down from 0.9% in May, with the RBZ noting an average of 0.5% monthly inflation since February.
The central bank expects inflation to end the year at 30% year-on-year, reflecting optimism in the strength of the ZiG (Zimbabwe Gold-backed currency).Zimbabwean wine
Foreign Currency Inflows Surge
The central bank reported that Zimbabwe received US$6 billion in foreign currency between January and May 2025, up from US$4.9 billion during the same period in 2024. These inflows are said to support both legitimate foreign payments and bolster the bank’s reserves that anchor the ZiG.Zimbabwean wine
Reserves Back ZiG Deposits
The RBZ also revealed that foreign reserves increased from US$630 million in Q1 to US$731 million in Q2 2025. Notably, gold reserves surged from 1.5 tonnes in April 2024 to 3.4 tonnes by June 2025.
As of 30 June, these reserves fully covered the stock of ZiG deposits across the banking sector, reinforcing the currency’s credibility. The Central Bank said:
This reserve position allows us to intervene decisively in the market when needed to protect the ZiG.
Targeted Finance Sustains Production
Under its tight monetary policy, the RBZ introduced a Targeted Finance Facility (TFF) in February 2025 to ensure credit continues flowing to productive sectors despite restricted liquidity.
So far, the manufacturing and agricultural sectors have received 48.82% and 34.73% of disbursed TFF funds, respectively.
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