HARARE – The Reserve Bank of Zimbabwe (RBZ) has announced new monetary measures that tighten the screws on exporters while offering limited relief to struggling sectors of the economy.
Governor John Mushayavanhu unveiled the policies in a monetary policy statement on Thursday, aimed at stabilising the economy and supporting the local currency, the ZiG.
Under the new policy, exporters will now retain only 70% of their foreign currency earnings in US dollars, down from the previous 75%. The remaining 30% will be converted into ZiG. This adjustment, according to Mushayavanhu, is meant to increase the supply of local currency and bolster Zimbabwe’s foreign exchange reserves.
“In order to guarantee continued stability in the interbank foreign exchange market through augmenting the supply of foreign currency, as well as building the critical foreign currency reserves needed to anchor the ZiG, the foreign currency retention level for exporters has been reduced from 75% to 70%, with immediate effect,” Mushayavanhu said.
He further explained that the change aligns with the increased use of ZiG in the economy. However, exporters, particularly those in mining and agriculture, have expressed concerns that the policy will worsen profitability challenges as most of their costs are denominated in US dollars.
Exporters losing value due to the 5% reduction will have the option to deposit the additional ZiG in a special RBZ fund, where it can be withdrawn at the official interbank exchange rate. Mushayavanhu said this measure aims to “ensure the preservation of value.”
Despite this provision, exporters remain dissatisfied, citing high operational costs in US dollars, including energy and labour expenses. The mining sector, which accounts for a significant share of export earnings, had previously lobbied for an increase in forex retention to 85%.
Key Measures from the Monetary Policy Statement
- Forex Trade Restrictions Lifted
RBZ has removed the 5% trading margin for forex transactions introduced when the ZiG was launched. Companies are now allowed to trade forex at market-consistent margins and can purchase unlimited amounts, a move expected to ease pressure on businesses grappling with exchange rate distortions. - Interest Rates Held Steady
The central bank maintained interest rates at 35%, while raising the minimum bank deposit rate by 1.5 percentage points to 5% for savings accounts. - Gold and Forex Reserves
Zimbabwe’s gold and forex reserves have grown to US$550 million, an 87% increase since the launch of the ZiG. Gold reserves now stand at 2.7 tonnes, up from 1.5 tonnes. - Forex Receipts and Imports
In 2024, forex inflows rose to US$13.3 billion, driven by US$7.9 billion in export earnings and US$2.15 billion in diaspora remittances. Mineral exports, particularly gold, saw a sharp rise, but imports also increased to US$9.1 billion, largely due to food and grain purchases caused by drought conditions. - New ZiG Notes
The RBZ plans to introduce redesigned ZiG notes to enhance durability and align with international standards.
Exporters Bear the Brunt
The new measures signal the government’s continued reliance on exporters to shore up the local currency. However, with exporters already citing challenges in profitability, these policies may further deter investment in key sectors.
The RBZ has also highlighted efforts to stabilise the ZiG by intervening in the forex market, having sold US$407.4 million between April and December 2024, and US$35 million in January 2025.
As exporters and other stakeholders assess the impact of these measures, the RBZ’s balancing act between stabilising the economy and addressing operational concerns remains under scrutiny.
