By Alois Vinga
President Emmerson Mnangagwa on Tuesday praised the Reserve Bank of Zimbabwe’s (RBZ) tight monetary policy stance, describing it as favourable for sustaining economic activity and maintaining stability in the economy.
Since taking over as RBZ Governor last year, Dr. John Mushayavanhu has implemented a restrictive monetary policy aimed at anchoring price, currency, and exchange rate stability. The approach involves maintaining a high bank policy rate, currently at 35%, to curb speculative borrowing, which has been a major driver of excess liquidity and illicit parallel market activity.
Other measures, such as elevated reserve requirements, have also been introduced to control inflation while supporting long-term economic growth.
As a result, the policy has helped sustain the ZWG currency, which has enjoyed nearly a year of relative stability, encouraging broader acceptance and usage.
Presenting the State of the Nation Address (SONA), Mnangagwa credited the RBZ’s monetary discipline for fostering a favourable economic environment.
“The tight monetary and fiscal environment in the economy has remained favourable to support sustained economic activity. My Government is diligently implementing the necessary policies, measures, and initiatives to maintain the stability of the ZWG and inflation,” he said.
The President added that the ongoing trend of macroeconomic stability is expected to become a permanent feature of Zimbabwe’s economy.
He also highlighted significant progress in the country’s foreign currency generation capacity.
“Inflows stood at US$10.4 billion as of August 2025, an increase of 26.8% from the US$8.3 billion recorded during the same period in 2024. Consequently, foreign currency reserves rose to about US$900 million by the end of September 2025, up from US$700 million in June 2025.
“In recognition of this progress, the World Bank recently ranked Zimbabwe first among the top 10 countries globally that have made significant gains in foreign currency reserve accumulation. On the fiscal front, I am pleased to advise that we remain steadfast in strengthening sustainable resource mobilisation strategies to ensure the continued provision of public services,” Mnangagwa added.