[ad_1]
THE Reserve Bank of Zimbabwe’s (RBZ) foreign currency reserves surged by 87% to reach US$550 million.
At inception in April 2024, the Reserve Bank of Zimbabwe (RBZ) claimed that minerals and foreign currency reserves backing up the ZWG stood at US$285 million, way above the thresholds to defend the local currency from unforeseen uncertainties.
The reserves consist of foreign currency and precious metals (mainly gold), from mining royalties, direct currency purchases from the interbank market and outright gold purchases.
“Consequently, the total holdings of gold and foreign reserves have since increased by 87%, from US$285 million in April 2024 to around US$550 million as at the end of January 2025. This has also ensured the full coverage of the total ZiG deposits in the economy of around ZiG13 billion, thereby supporting the Reserve Bank’s currency and exchange rate stability objectives,” RBZ governor, John Mushayavanhu said.
The central bank said the reserves accumulation strategy is centred on ensuring that, at any point, the ZiG component of reserve money is fully backed.
Based on the current trends of foreign exchange inflows, including in-kind royalties, the RBZ believes the reserve accumulation strategy for 2025 will result in a significant improvement in foreign reserve holdings at the Reserve Bank.
[ad_2]
Source link
