• Main bank rates, interest rates corridor, statutory reserves remain steady
  • Transactions of less than US$10 or ZiG equivalent will not pay bank charges
  • RBZ will now issue tradable government bonds to companies owed from the forex auction and the 25% surrender requirement

Harare- The Reserve Bank of Zimbabwe (RBZ) has announced its mid-term monetary policy statement, with no major shifts.

The main bank rate remains unchanged, along with the interest rate corridor and statutory reserves.

This, the Bank said was feasible given currency stability, ZiG’s wider acceptance from 80% in May to 91% in June, firm and adequate reserves of US$375 million by end of June compared to ZiG total reserve money (including NNCDs) of US$139 million which is a significant increase from reserve asset holdings of US$285 million when ZiG was announced on 5 April 2024.

However, this is despite a widening premium  of 74% which continues to exist between the formal market and parallel market since July.

“Given the stability of inflation and exchange rates, we maintain our policy rate to ensure financial stability and support economic recovery,” stated the Bank.

Policy Adjustments

Regarding refinement of the Non-Negotiable Certificates of Deposits (NNCDs) for outstanding export surrender and auction backlog obligations, RBZ will issue tradable government bonds to companies owed from the forex auction, replacing the previously planned Non-Negotiable Certificates of Deposit, which faced resistance from firms.

To improve the business environment, the Bank extended exemptions for monthly bank maintenance fees for accounts with a daily balance of US$100 or below to Micro, Small, and Medium Enterprises (MSMEs) starting September 1, 2024.

Transactions under US$10 or the equivalent in ZWG will incur no bank charges to encourage digital transactions.

On the external front, merchandise exports are projected to reach US$7,330.4 million, a 1.8% increase from US$7,251.9 million in 2023, despite lower lithium and PGMs exports.

Conversely, imports are expected to rise by 4%, totaling US$8,999.4 million, driven by increased grain, fuel, and raw material imports.

The current account balance is forecasted to narrow from a surplus of US$133.9 million in 2023 to US$44.5 million in 2024, contributing to overall exchange rate stability in the future.

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