RBZ’s Billion-Dollar Bet: ZiG Reserves Poised to Soar

The Reserve Bank of Zimbabwe projects foreign reserves to surpass US$1 billion by end-2025 (image source)

Harare — Zimbabwe’s foreign currency war chest is on the brink of a landmark breakthrough, with the Reserve Bank of Zimbabwe (RBZ) projecting its reserves will eclipse the US$1 billion threshold by the end of 2025. Acting Governor Dr. Jesimen Chipika made the announcement at the 11th Annual CEO Africa Roundtable Conference in Victoria Falls, outlining how a fortified reserve base underpins the central bank’s drive to cement the ZiG as the country’s primary currency.

Chipika highlighted the RBZ’s aggressive accumulation strategy, which vaulted reserves from US$276 million in April 2024 to over US$900 million by September 2025. “At this level, our foreign currency holdings cover the ZiG reserve money more than four times,” she said. “That firepower allows us to intervene decisively in the forex market to smooth volatility and sustain stability.”

Conference delegates said the pledge resonated across the business community. “Reaching US$1 billion is a game-changer,” remarked Sylvia Madondo, CFO of a Victoria Falls tourism operator. “Stable reserves translate into predictable exchange rates, which in turn lower the hedging costs that strangle cross-border trade.”

Beyond market interventions, Dr. Chipika stressed that a solid reserve buffer is critical for restoring faith in the ZiG and steering the economy toward a mono-currency framework. She projected the current annual inflation rate of 82.7 percent will tumble to between 20 and 30 percent by year-end, before settling into single digits in the medium term — key milestones for phasing out parallel currencies.

Economists welcomed the forecasts but urged caution over execution. “Dr. Chipika’s targets are ambitious and hinge on continued export performance and remittance inflows,” said Dr. Simon Rangarirai of the African Development Institute. “Any external shock — be it drought or tighter global liquidity — could derail progress and pressure the ZiG anew.”

Local manufacturers already feel the ripple effects. At Harare’s Cotton Mills Ltd., procurement manager Tendai Gumbo noted fewer payment disputes since the RBZ ramped up interventions earlier this year. “Our foreign suppliers are asking for ZiG-denominated invoices where possible,” she said. “That’s a sign they see less currency risk in dealing with Zimbabwe.”

Looking ahead, the RBZ aims to build reserves sufficient to cover three to six months of essential imports, a benchmark it has yet to achieve consistently. Dr. Chipika reaffirmed that fiscal prudence and tight monetary policy will remain non-negotiable.

With less than three months before the 2026 budget cycle, all eyes now turn to Finance Minister Mthuli Ncube to align government spending with the central bank’s stability agenda. If the US$1 billion mark is crossed as forecast, Zimbabwe could finally reset the chronic volatility that has long hamstrung investment and living standards.