Zimbabwe’s Foreign Reserves Reach US$900 Million, US$1 Billion Projected By December

Zimbabwe Forex Reserves Surge To US$900 Million In Q3 2025

Zimbabwe’s central bank has announced that the country’s foreign currency reserves have climbed to US$900 million (approx. R16.7 billion). The Reserve Bank of Zimbabwe (RBZ) expects this figure to pass the US$1 billion (approx. R18.6 billion) mark by December 2025, marking a major milestone in efforts to stabilise the economy.

The data was published in the Quarterly Snapshot for the third quarter of 2025, released on 10 October 2025. The update credits the growth to strong global mineral prices, especially gold and platinum, along with narrowing trade deficits and record foreign currency inflows. By the end of September 2025, foreign currency receipts had reached US$10.3 billion (approx. R191 billion).

A Significant Increase In Reserve Holdings

The latest reserves figures show a marked rise compared to earlier in the year. At the end of June 2025, Zimbabwe held US$731 million (approx. R13.6 billion) in reserves. This means the country accumulated US$169 million (approx. R3.1 billion) within three months, largely fuelled by mineral revenues and stronger inflows from exports.

The RBZ highlighted the importance of this momentum, saying:

“The strong foreign currency inflows have bolstered the Reserve Bank’s foreign reserves accumulation, resulting in a significant build-up in foreign currency reserves from US$731 million as at June 2025 to US$900 million as at the end of the third quarter of 2025.”

The reserves currently provide 1.1 months of import cover for goods. In the same period last year, Zimbabwe’s reserves could only cover 0.37 months — less than two weeks of imports.

The Quarterly Snapshot also directly linked the reserve build-up to confidence in the national currency, the ZiG.

“The foreign reserves covered about 4 times the reserve money, in line with the Reserve Bank’s commitment to ensure full backing of ZiG. The reserves also cover all ZiG deposits in the banking sector, signaling the sustained stability of ZiG.”

Analysts note that this arrangement mirrors systems in other economies where foreign reserves act as a direct guarantee for the stability of the local unit. For the RBZ, this move is presented as a deliberate effort to reassure both businesses and the public.

Mixed Reactions From Observers

The news has been met with a mix of support and debate. On 13 October 2025, prominent economist Professor Gift Mugano took to X to commend the RBZ’s approach.

He wrote:

“Reserves at US$900 million – will exceed US$1 billion by December 2025. RBZ is regularly sharing its economic report card something @ZimTreasury can’t do because vari kufoira (they are shining). John 2 & team are doing a fantastic job.”

His post contrasted the central bank’s transparency with what he described as shortcomings in the Ministry of Finance.

The Snapshot also revealed progress on the country’s trade performance. In August 2025, Zimbabwe recorded a trade surplus of about US$7 million (approx. R128 million), breaking a long pattern of deficits. For the full year, the RBZ projects a surplus of around US$100 million (approx. R1.86 billion). This is a dramatic turnaround from the US$1.3 billion (approx. R24.1 billion) deficit recorded in 2024, and from average annual deficits of US$1 billion since 2019.

The current account is also projected to remain positive, with an expected surplus of US$1.3 billion (approx. R23.8 billion) for 2025, compared to US$501 million (approx. R9.1 billion) in 2024.

Economic Outlook And Cautions

The RBZ says the rising reserves are already helping stabilise both inflation and exchange rates. From February to September 2025, monthly ZiG inflation averaged just 0.5%. By September, month-on-month inflation had dipped into negative territory, at -0.25%.

The exchange rate has also remained steady. The interbank market kept the ZiG at around 26.76 per US dollar in Q3, while the parallel market premium narrowed closer to convergence with the official rate.

The Quarterly Snapshot also sets out the growth outlook:

“The economic growth momentum is expected to persist in the near and medium term, underpinned by the conducive macroeconomic environment, resulting from the ongoing macroeconomic stability.”

Economic growth is projected to exceed 6% for 2025. Inflation is forecast to remain below 20% annually by December, in line with RBZ’s target range.

However, the bank has cautioned that reserve accumulation could slow in the last quarter of 2025. This is traditionally a period of high foreign exchange demand due to the agricultural season, when farmers and importers require more foreign currency, while export receipts usually taper off.

Despite this seasonal challenge, the RBZ said it remains committed to “prudent, data-driven policy” and would continue to provide regular updates to the public. The next quarterly update, expected in early 2026, will confirm whether Zimbabwe has met the symbolic US$1 billion milestone.