Zimbabwe’s gold and foreign currency reserves are projected to reach $2.2 billion by the end of 2026, after more than doubling from $697 million in June 2025 to $1.5 billion in June 2026. The announcement was made by Finance Minister Mthuli Ncube, who highlighted the improvement in the country’s external position.
According to Mthuli Ncube, the build-up in reserves will enable Zimbabwe to maintain exchange rate stability, secure essential imports, and withstand external economic shocks. The resources will also give the central bank greater capacity to intervene in the foreign exchange market, facilitate international payments, and provide coverage for the national currency, the ZiG.
Speaking at the 2027 National Pre-Budget Seminar in Bulawayo, the minister said: “Our reserves now cover approximately four times the total reserve money and ZiG market deposits.”
The minister also forecast that the current account surplus would rise from $2.1 billion in 2025 to $3.9 billion in 2026. In the first half of this year, the positive balance reached $1.1 billion, compared with $248.2 million in the same period of 2025, driven by strong export performance and remittance inflows.
Foreign currency receipts grew 47.8% in the first half of 2026, reaching $10.7 billion. Of that total, 70.3% came from exports and 14.4% from remittances. Mthuli Ncube attributed the improvement to higher diaspora remittances and rising prices for gold and platinum group metals.
On the monetary front, the minister noted that currency and liquidity management has contributed to price and exchange rate stability. The central bank’s benchmark interest rate was reduced from 35% to 30% in June 2026, and further to 27.5% in September. Statutory reserve requirements remain at 30% for demand and time deposits and at 15% for savings and time deposits, in both local and foreign currency.
To manage liquidity, the central bank has used open market operations through Non-Negotiable Certificates of Deposit. In 2026, it also introduced a ZiG-Denominated Fixed Deposit Facility, designed to absorb excess liquidity in the financial system.
For 2027, the government intends to continue fiscal consolidation under the second National Development Strategy. Key priorities include keeping the budget deficit below 3% of gross domestic product and directing public resources towards projects that promote economic transformation and inclusive growth. Mthuli Ncube added that reforms will be implemented to improve public expenditure efficiency and stimulate private investment.
The minister further stated that the Treasury intends to create more favourable conditions for attracting both domestic and foreign investment, building on the progress achieved under the first National Development Strategy.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=556661
