By Takudzwa Tondoya
The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) has announced a series of resolutions aimed at maintaining economic stability in the face of mounting global challenges.
The decisions followed the MPC’s meeting held on June 16, 2025, to assess recent macroeconomic and financial developments.
In a statement, RBZ Governor Dr. John Mushayavanhu said the Committee had observed a slowdown in global economic growth driven by rising trade tensions, geopolitical conflicts, policy uncertainty and geo-economic fragmentation.
“Due to these global headwinds, the 2025 global growth forecast has been revised down from 3.3% to 2.8%. Despite this uncertain external environment, Zimbabwe’s domestic economy remains resilient and is expected to grow by 6% in 2025,” Mushayavanhu said.
The MPC highlighted the role of the Targeted Finance Facility (TFF) in supporting key productive sectors of the economy by enhancing market liquidity.
As of June 13, 2025, disbursements under the facility had reached ZiG392 million.
“The Reserve Bank urges all productive sectors, including agriculture, to make use of the TFF to boost output,” the Governor said.
He also reported that exchange rate and inflation stability had been sustained during the second quarter of 2025 with the parallel market exchange rate premium holding steady at around 20%.
“The Committee further observed increased activity and depth in the Willing-Buyer Willing-Seller (WBWS) foreign exchange market, which continues to meet all legitimate foreign currency demand,” Mushayavanhu added.
To improve liquidity management the RBZ has strengthened its open market operations by adjusting the structure of Non-Negotiable Certificates of Deposit (NNCDs). Effective May 27, 2025, the short-term maturity options of 7, 14, and 21 days were discontinued, with excess balances now locked into a fixed 30-day tenor.
The MPC also commended the Reserve Bank’s commitment to clear and transparent communication describing it as a vital tool in reinforcing confidence and credibility in monetary policy.
“MPC has recommended that the Reserve Bank maintain a tight monetary policy stance to manage inflation and support economic growth. RBZ remains committed to updating the market on any policy adjustments in response to evolving risks,” Mushayavanhu said.
