The Reserve Bank of Zimbabwe published its third quarter monetary and financial snapshot, reporting sustained single digit ZiG inflation, a stable exchange rate and stronger foreign currency reserves. Against this backdrop, the Monetary Policy Committee reduced the Bank Policy Rate from 30% to 27.5% in September, following a cut from 35% to 30% in June. Annual ZiG inflation reached a low of 2.9% in August before rising to 3.7% in September, while monthly inflation averaged 0.4% in the first nine months of 2026. Foreign currency receipts increased 33.7% year over year to an estimated USD 15.9 billion between January and September, exceeding payments by USD 4.3 billion. Reserves rose from USD 1.4 billion in June to about USD 2 billion in September, equivalent to two months of import cover and around six times ZiG reserve money. The ZiG exchange rate averaged 26.70 per US dollar and closed the quarter at 26.80, while the parallel market premium narrowed to around 15%. The Reserve Bank also reported that all quantitative targets under the International Monetary Fund Staff Monitored Programme were met and that the score measuring conditions for a transition to a mono currency improved from 50.1% in August to 54.9% in September. The transition to a mono currency remains conditions based rather than tied to a date, and the latest score does not signal an immediate change. The Reserve Bank expects ZiG inflation to remain in single digits and end 2026 below 7%, while continued foreign currency inflows are projected to support reserve accumulation beyond the current two months of import cover.

Original source