Reserve Bank of Zimbabwe (“RBZ”) Resolutions of The Monetary Policy Committee (“MPC”) Meeting Held on 16 June 2025; Key Highlights.

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  • The MPC noted the broad-based deceleration of global growth occasioned by escalating trade tensions, geo-economic fragmentation, regional and international conflicts and policy uncertainty.
  • Global developments may affect the country through subdued trade, weak commodity prices, higher borrowing costs and cuts in foreign aid.
  • Despite global external forces, the domestic economy is projected to remain resilient and grow by 6% in 2025.

        -The 6% growth will be underpinned by agricultural sector recovery and stability in price and exchange rate.

  • As of 13 June, ZWG392m, was disbursed through the Targeted Finance Facility (“TFF”). RBZ encourages all productive sectors to take advantage of the facility.
  • The foreign exchange market has been clearing all the Bonafide and legitimate demand for foreign currency.
  • In line with improved monetary conditions, annual inflation is expected to decline during the last quarter of 2025 ending the year at below 30%
  • Maturity buckets of 7, 14 and 21 days for Non-Negotiable Certificates of Deposits (“NNCDs”) discontinued effective 27 May 2025.

        -Any excess balances now have a fixed tenor of 30 days.    

       -Early terminations of NNCDs are now only permissible for settling government tax pay-overs and purchasing foreign currency from the Reserve Bank

  • The proportion of local currency transactions on the National Payment System increased from ZWG7.9b (26%) in April 2024 to ZWG56.8b (43%) as of 31 May 2025.
  • ZWG reserve money (ZWG4.7b) and all local currency deposits (ZWG15.5b) are backed by foreign currency reserves amounting to ZWG18.9b (US$701m) as of 13 June 2025.
  • MPC maintained the current monetary policy measures as follows:

        - Bank Policy Rate at 35%

        - Statutory reserve requirement for savings and time deposits in ZWG for both local and foreign currency at 15% and for demand and call deposits for both local and foreign currency deposits at 30%

  • The MPC commended the use of clear communication by the Reserve Bank as an effective policy tool to build and enhance credibility.
  • The MPC advised the Reserve Bank to maintain a sufficiently tight monetary policy stance.
  • The MPC commended the use of clear communication by the Reserve Bank as an effective policy tool to build and enhance credibility.
  • The MPC advised the Reserve Bank to maintain a sufficiently tight monetary policy stance.

 

 

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