Major Highlights from the Monetary Policy Statement presented by the Governor.

On the 6th of February 2024 by the Governor, Dr J Mushayavanhu presented the 2025 Monetary Policy Statement hinging on the motto “FOSTERING PRICE, CURRENCY AND EXCHANGE RATE STABILITY THROUGH BALANCING CONFIDENCE-TRUST-CREDIBILITY-EFFICIENCY-STABILITY-GROWTH.”

Major 2025 Highlights.

• Interest rates.

  • Bank Policy Rate
    • Maintain interest rates at 35% per annum.
  • Minimum Deposit Interest Rates and Promotion of a Savings Culture.

    • Currency Term	Savings Deposit Rates		Time Deposit Rate
      Old	New	Old	New	Old
      ZiG Deposits	3.50%	5%	5%	7.50%
      USD Deposits	1%	2.50%	2.50%	4%

• Review of Exporters’ Foreign Currency Retention Threshold.

  • • Reduce retention from 75% to 70%.
    • In order to guarantee continued stability in the interbank foreign exchange market through augmenting the supply of foreign currency, as well as building the critical foreign currency reserves needed to anchor the ZiG, the foreign currency retention level for exporters has been reduced from 75% to 70%, with immediate effect.
    • This implies that the effective surrender portion of export proceeds has been increased from 25% to 30%.
    • This will have have an impact on Exporters such as miners, they are now worse off than before, their businesses are less profitable and hurting investments.

• Introducing a US Dollar Denominated Deposit Facility (USDDDF).

  • • Exporters with no immediate use of the ZiG equivalent for the additional 5% export proceeds surrender requirement will have an option to invest in a USDDDF at the Reserve Bank which they can withdraw in ZiG on demand at the prevailing interbank exchange rate on the settlement date.

• Refinement of the Foreign Exchange Management System.

  • Clarification of the Interbank Foreign Exchange Trading Guidelines
    • The 5% trading margin was was only applicable for the determination of the starting exchange rate, following the introduction of the new currency, ZiG.
    • Authorised Dealers are expected to on-sell foreign exchange purchased from willing sellers, including the Reserve Bank, at a margin consistent with international best practices.
  • Removal of Limits on Foreign Exchange Trading.
    • Abolish the US$100,000 and $500,000 on Secondary and Primary users of foreign currency respectively.

• Review of Prepaid International Debit and Credit Cards Limit

  • • Reviewed upwards the annual limit from US$500,000 (Five hundred thousand United States Dollars) to US$1,000,000 (One million United States Dollars).

• Foreign Currency Exposure Limits

  • • In order to allow ZiG to gain prominence in the multicurrency system and align with the prescribed foreign currency exposure limits under the Banking Regulations, the Reserve Bank will set upper limits to facilitate winding down, by banking institutions, that are currently over-exposed in foreign currency.

• Statutory Reserves

  • • The statutory reserve ratios have been maintained at 30% for demand deposits and 15% for savings and fixed deposits in both local and foreign currency.

• Bank and Transaction Charges

  • • The Reserve Bank will continue to ensure that banks strictly adhere to a policy compelling them to exempt from bank charges, all accounts that maintain a balance below US$100 or its equivalent in ZiG. In addition, Point of Sale (POS) transactions for amounts less than US$5 or its equivalent in ZiG are also exempted from transaction charges, for both banking institutions and Payment System Providers (PSPs).

• Promoting Inter-Bank Market Trading.

  • • Banks are, therefore, encouraged to set counterparty limits among themselves that promote a vibrant and efficient inter-bank money market, which is vital for monetary policy effectiveness.

• Functional and Presentation Currency – Financial Reporting.

  • • All entities adopt a common presentation currency, ZiG, for reporting purposes, with immediate effect, including for the 2024 audited financial statements.
    • Government and other regulatory bodies, such as the Zimbabwe Stock Exchange (ZSE), the Securities and Exchange Commission of Zimbabwe (SECZim) and the Insurance and Pension Commission (IPEC) will issue statements to enforce the new reporting requirements by all entities.

• The Targeted Finance Facility (TFF) and Access to WBWS Interbank Foreign Exchange Market.

  • • In January 2025, the Reserve Bank introduced the Targeted Finance Facility (TFF) to enhance banks’ support to productive sectors.

• Promoting Digital Payments and Use of Point of Sale (POS) Machines.

  • • In line with the policy stance to enhance digital transactions in the economy, Banks and Payments System Providers (PSPs) are directed with immediate effect to ensure that every business account (new and existing) is issued with a Point of Sale (POS) machine or any other approved digital mechanism which can facilitate transactions in both ZiG and USD.
    • To promote the use of normal banking channels on all domestic trading transactions, the Reserve Bank further advises all Local Authorities and other licencing entities to ensure that all applicants for trading licences (individuals or corporates) have a bank account and a functional POS machine at the point of licencing and/or renewal.