- Record Winning Streak: ZiG chieved its longest bullish run since April 2025, with nine months of minimal losses
- Gold Reserve Growth: Gold reserves increased to 3.4 tonnes, positioning Zimbabwe as the third-largest gold reserve holder in Africa
- Emerging Risks: Challenges such as deferred payments of US$1.5–2.0 billion and concerns over fiscal transparency pose risks to the ZiG’s stability
Harare- The Zimbabwe Gold (ZiG) currency exhibited robust appreciation in late June 2025, a trend that extended into July 2024, bolstered by an expansion in gold reserves and sustained tight monetary policy measures.
The ZiG posted gains on June 24 and June 27, concluding the month with strengthened value.
Month-on-month performance metrics indicate progressive improvement.
The ZiG recorded a 2.0% depreciation in January 2024, narrowing to 0.7% in February, 0.6% in March, 0.2% in April, 0.4% in May, and a marginal 0.1% in June, marking June as the strongest performing month year-to-date.
This positive trajectory persisted into July, with appreciations recorded on July 4, July 7, and a significant rally on July 10, culminating in a firmer close for the week ended July 11, 2025.
The ZiG is currently experiencing its longest bullish run since its inception in April 2024, sustaining nine months of minimal losses while benefiting from increased market liberalisation in trading.
According to the International Monetary Fund (IMF), this stability is underpinned by disciplined fiscal and monetary frameworks.
Key structural reforms include the transfer of quasi-fiscal operations from the Reserve Bank of Zimbabwe (RBZ) to the Treasury, mitigating a primary driver of money supply growth over the past 13 years, alongside sustained high interest rates to maintain restrictive monetary conditions.
Gold reserves, a critical anchor, have risen to 3.4 tonnes (approximately US$0.7 billion), positioning Zimbabwe as the third-largest gold reserve holder in Africa, behind Algeria and South Africa. This reserve accumulation, driven by robust bullion exports, enhances the RBZ’s capacity for foreign exchange market interventions, bolstering short-term confidence in the ZiG.
However, emerging risks threaten this stability.
Deferred payments, estimated at US$1.5–2.0 billion, temporarily suppress money supply growth and artificially bolster fiscal balances. This strategy, while effective in the near term, risks precipitating currency volatility upon maturity of these obligations, potentially triggering a 25% devaluation based on accrued payments exceeding US$1.5 billion and a growing stock of Treasury Bills (TBs).
Fiscal transparency remains a concern, with deficiencies in consolidated budget reporting and potential pressures on the Zimbabwe Revenue Authority’s (ZIMRA) collections.
Sustained stability hinges on deeper structural reforms, including public enterprise and parastatal restructuring outlined in the 2019 Transitional Stabilisation Programme (TSP).
These reforms could yield fiscal savings of up to US$1.0 billion annually, with an additional US$0.7 billion in revenue potential, delivering a net fiscal benefit of US$1.7 billion over the medium term.
The Mutapa Investment Fund (MIF), now overseeing most state-owned enterprises, is pivotal to this outcome through asset rationalisation, operational turnarounds, and capital raising.
However, IMF concerns regarding MIF’s governance and operational independence from central government functions highlight the need for enhanced transparency.
Looking ahead, the government is likely to prioritise reserve accumulation and expenditure rationalisation to fortify the ZiG’s fundamentals.
The RBZ’s confidence in the currency’s sustainability is supported by rising reserves, but the accumulation of deferred debt and TBs poses a significant risk.
Mismanagement could precipitate sharp devaluations, undermining the currency’s hard-earned stability.
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