Latest news with #ReserveBankofZimbabwe
Business Insider
09-07-2025
- Business
- Business Insider
Gold and forex reserves supporting Zimbabwe's ZiG hit all-time high
Gold and foreign-currency reserves supporting Zimbabwe's bullion-backed currency, the ZiG (Zimbabwe Gold), hit a record high in June, according to the central bank. Zimbabwe's central bank reported record-high gold and foreign currency reserves, reaching $731 million in June. The ZiG currency experienced its largest single-day gain against the U.S. dollar due to increased gold production and reserves. The ZiG was introduced to replace the defunct Zimbabwean dollar, addressing past economic instability caused by previous currency collapses. Gold and foreign-currency reserves supporting Zimbabwe's bullion-backed currency, the ZiG (Zimbabwe Gold), hit a record high in June, according to the central bank. The reserves rose to $731 million last month, up from $639 million in May and significantly higher than the $276 million reported in April 2023, when the ZiG was first introduced. The update was shared in a statement released by the central bank on Wednesday. This week, Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year, buoyed by a sharp increase in gold production and stronger foreign currency reserves. A new chapter after currency failures Years of economic mismanagement have led to the collapse of five previous attempts to establish a stable currency in Zimbabwe, according to Bloomberg. The ZiG, introduced to replace the defunct Zimbabwean dollar, which had plummeted in value, is the latest effort. This increase in bullion output has helped triple Zimbabwe's foreign reserves, offering a much-needed buffer for the country's fledgling currency and economy. The Reserve Bank of Zimbabwe last month reported that it now holds 3.4 tons of gold in its reserves, more than double the 1.5 tons it had in storage when the ZiG currency was first introduced in April last year. Authorities now hope the gold-backed ZiG will eventually take over from the US dollar, which has served as a parallel currency in the country since 2009. The International Monetary Fund (IMF) also expressed support for the ZiG, stating that it hopes to see the currency evolve into Zimbabwe's sole legal tender under a potential staff-monitored program.
Business Insider
05-07-2025
- Business
- Business Insider
Zimbabwe's ZiG posts biggest gain yet on soaring gold reserves
Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year. Zimbabwe's gold-backed currency, the ZiG, has seen its largest single-day gain against the US dollar this year by 0.2%, trading at 26.89 per dollar. This appreciation is supported by a 46% increase in gold production in the first half of the year, with 20,104 kilograms produced. This surge in gold output has significantly increased Zimbabwe's foreign reserves, enhancing the financial stability of the ZiG. Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year, buoyed by a sharp increase in gold production and stronger foreign currency reserves. The ZiG appreciated by 0.2% on Friday, trading at 26.89 per dollar, according to data published on the Reserve Bank of Zimbabwe's website. It marked only the 12th time the currency has strengthened against the dollar in 2025, according to Bloomberg. The boost comes as gold production rose nearly 46% in the first half of the year to 20,104 kilograms, according to Fidelity Refineries, the country's sole gold refinery. June alone saw a 63% year-on-year surge in output. This increase in bullion output has helped triple Zimbabwe's foreign reserves, offering a much-needed buffer for the country's fledgling currency and economy, the central bank said. The Reserve Bank of Zimbabwe last month reported that it now holds 3.4 tons of gold in its reserves, more than double the 1.5 tons it had in storage when the ZiG currency was first introduced in April last year. IMF expresses cautious optimism Last month, the International Monetary Fund (IMF) expressed support for the ZiG, stating that it hopes to see the currency evolve into Zimbabwe's sole legal tender under a potential staff-monitored program. The currency is Zimbabwe's sixth attempt in 15 years to establish a stable local currency, and it is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank. However, despite its gold backing, the ZiG has struggled to win the public's trust.
Zawya
20-06-2025
- Business
- Zawya
Zimbabwe says gold-backed currency stable but investor doubts persist
Zimbabwe's gold-backed currency now has more than 100% reserve cover and is stable, according to the central bank, but doubts over its credibility remain, underscored by a persistent premium in the parallel market. The Reserve Bank of Zimbabwe on Monday, 16 June 2025 kept its benchmark rate unchanged at 35%, citing a stable exchange rate as one of the reasons, and reported total reserves of $701m. The bank said the portion of transactions carried out using the Zimbabwe Gold (ZiG) currency surged to 43% in May from 26% in April 2024, the month it was introduced. Decades of economic instability and currency devaluations mean most people still use the US dollar for most purchases. But the authorities are hoping the ZiG's gold backing will give Zimbabweans the confidence to adopt it for everyday transactions. "ZiG is our national currency, and as the central bank, we are committed to ensuring its success by maintaining all the fundamental characteristics of sound money, including its function as a reliable store of value," Reserve Bank Governor John Mushayavanhu said. "The Reserve Bank has learned from previous currency failures that maintaining optimum money supply and ensuring monetary stability is vital," he added. Despite the bank's assurances, the gap between the official exchange rate and parallel market rate remains about 20%. "The rate has been stable for more than three months," said black-market trader Pearson Tambudze, attributing the stability to a scarcity of the local currency rather than restored confidence. "There isn't a lot of ZiG in the market," he said. The International Monetary Fund has welcomed the ZiG's stability but is urging Zimbabwe to adopt tighter money-growth limits, a more transparent foreign exchange market and to make progress on clearing an estimated $12.2bn in external arrears. Finance Minister Mthuli Ncube, meanwhile, expressed hope last month that currency stability and appropriate monetary policy would enable Zimbabwe to raise $2.6bn in bridge finance by mid-2026. Investors, however, remain cautious. "We wouldn't invest in Zimbabwe at the current stages. The country needs to have a lot more development before we would consider it," said Jetro Siekkinen at LGT Capital Partners. Economists also flagged concerns over Zimbabwe's reserve cushion, which stands at 0.8 months of import cover, well short of the IMF's recommended three-month safety net. "In terms of priority, I would consider the clearance of arrears with multilateral creditors to be most important," said Lyle Begbie, an economist at Oxford Economics. Two earlier IMF staff-monitored programmes collapsed within 15 months, and Begbie predicted similar outcomes for future efforts. "Ultimately, we are likely years away from the IMF providing concessional financing to Zimbabwe, even if the country does everything right, which itself is not likely," he said.
News24
19-06-2025
- Business
- News24
IMF says Zimbabwe's economy has made ‘significant progress'
The International Monetary Fund (IMF) said Zimbabwe's economic progress represents a 'regime change,' but declined to say if or when the Washington-based lender would grant it a staff-monitored program. Wojciech Maliszewski, who is visiting the southern African nation to conduct a regular IMF economic health update, said the conduct of the Reserve Bank of Zimbabwe (RBZ), which has vowed to halt printing money to finance the government, was particularly impressive. 'The RBZ, holding liquidity positions tight, not providing monetary financing to the government. I think this is a regime shift,' he told Bloomberg on Wednesday in the capital, Harare. Still, he declined to be drawn on whether the IMF would accede to Zimbabwe's request for a SMP. The informal process could lift confidence in the country and provide a stepping stone to restructuring a $21 billion debt pile that's kept it locked out of global financial markets since it defaulted in 1999. 'What is most important for us at this stage is to make sure that when authorities enter the program, they will exit a successfully completed program,' he said. 'This requires a lot of effort, a lot time from both us and the authorities on the other side.' Zimbabwe, which has asked neighboring South Africa for help in getting its debt reworked under the Group of 20 Common Framework, is trying to revive an economy wracked by years of mismanagement that's stoked hyperinflation and currency collapse. It unveiled the gold-backed ZiG last year — its sixth attempt at creating a functioning local unit — and Maliszewski, the IMF Mission Chief for Zimbabwe since 2023, said establishing it as a fully-fledged currency would be welcome. 'Looking at the current macroeconomic situation comparing it to what the country was when I started my assignment and before, its massive progress, significant progress,' he said.
Bloomberg
18-06-2025
- Business
- Bloomberg
IMF Says Zimbabwe's Economy Has Made ‘Significant Progress'
The International Monetary Fund said Zimbabwe's economic progress represents a 'regime change,' but declined to say if or when the Washington-based lender would grant it a staff-monitored program. Wojciech Maliszewski, who is visiting the southern African nation to conduct a regular IMF economic health update, said the conduct of the Reserve Bank of Zimbabwe, which has vowed to halt printing money to finance the government, was particularly impressive.
