Senior Business Reporter
THE Reserve Bank of Zimbabwe has announced several key monetary policy interventions, including slashing many bank charges and refining the foreign exchange trading regime as part of measures to reinforce domestic currency and price stability, boost market confidence and consolidate macro-economic gains.
The measures will be rolled out under the central bank’s ongoing tight liquidity management framework, which has already delivered key milestones, including a plunge in previously stubborn inflation and exchange rate stability.
Presenting the 2026 Monetary Policy Statement in Harare yesterday, RBZ Governor Dr John Mushayavanhu said the central bank’s primary focus remained safeguarding the stability of the Zimbabwe Gold (ZiG) and anchoring inflation expectations.
“Our thrust in 2026 is to entrench price and exchange rate stability through disciplined monetary targeting and enhanced market-based instruments.
“The bank will maintain a prudent reserve money growth trajectory consistent with the objective of sustaining low and stable inflation,” Dr Mushayavanhu said.
Interest rates, he said, would remain responsive to inflation developments and liquidity conditions in the market.
The apex bank reiterated its commitment to a market-determined exchange rate under the willing-buyer, willing-seller arrangement, while enhancing transparency and settlement discipline. The foreign exchange market will continue to operate on a transparent, market-driven basis, with the bank intervening only to smooth excessive volatility.
To improve the efficiency of the interbank foreign currency market under WBWS (Willing Buyer, Willing Seller) and as part of the broader efforts under National Development Strategy 2 (NDS2), the Reserve Bank is developing a new foreign exchange trading platform for authorised dealers.
In this regard, the Reserve Bank is working on a strategy to set up a transition path to a more competitive, transparent, credible, efficient and flexible foreign exchange market.
“The new foreign exchange trading platform is expected to help promote the greater interplay of market forces and price discovery in the foreign exchange market and will be introduced in due course,” he said.
The 2026 monetary policy will strengthen measures to curb parallel market activities and speculative behaviour. Authorities will intensify monitoring of banking institutions to ensure strict adherence to anti-money laundering regulations and proper utilisation of borrowed funds.
The central bank said the domestic currency remains anchored by tangible assets, including gold and foreign exchange holdings, with periodic disclosures aimed at strengthening public confidence.
Dr Mushayavanhu said the RBZ was committed to maintaining strict fiscal-monetary coordination to avoid quasi-fiscal operations that previously fuelled inflationary pressures, stressing that sustained stability depended on complementary fiscal discipline.
“Monetary stability cannot be achieved in isolation. It requires continued fiscal prudence and structural reforms across the economy,” he said.
Against this background, the bank maintained the bank policy rate at 35 percent, which has engendered a progressive disinflation trajectory and delivered single-digit inflation in January.
The bank policy rate indicates the central bank’s desired interest thresholds and guides banks’ interest rate levels and lending regimes.
“As such, the achievement of single-digit ZiG annual inflation (3,8 percent in February 2026) provides scope for the eventual review of the bank policy rate. It is, however, critical that the Reserve Bank remains cautious to avoid the premature easing of the monetary policy and risk reversing the gains on the inflation front,” he said.
Dr Mushayavanhu said in line with the Government’s thrust to promote the ease and low cost of doing business under NDS2, the bank took the first step to reduce costs associated with the use of its systems.
The bank has, with immediate effect, reduced the Real Time Gross Settlement charges from US$0,90 to US$0,80, payable in ZiG for the bank’s windows 1 and 2, and from US$1,20 to US$1,10, payable in ZiG equivalent for window 3.
The central bank chief applauded banks for exempting the public from monthly service fees for accounts with balances US$100 and below, or the ZiG equivalent and waiving charges on transactions of US$5 and below or the ZiG equivalent.
“These requirements remain in place and the banking institutions and deposit taking micro-finance institutions are required to comply,” he said.
However, the central bank said it continued to receive complaints from the public about the cost of banking, which discourages economic agents from using banking channels.
“A further reduction in bank charges will support an improved ease of doing business environment in the country, as well as the use of formal banking channels and broader financial inclusion,” Dr Mushayavanhu said.
The central bank has thus directed all banking institutions and deposit-taking micro-finance institutions to reduce cash withdrawal charges for both banking halls and ATMs to a maximum of 2 percent of the withdrawn amount for US dollars and ZiG cash.
Banks have also been instructed to reduce point of sale charges to a maximum 1,5 percent of the transaction amount for both local and international cards, capped at US$20 or the ZiG equivalent.
“No minimum charge shall be levied on any POS transaction and institutions are expressly prohibited from imposing a minimum fee.”
The central bank has also directed banking institutions to remove account balance inquiry charges on all banking and mobile platforms for both US dollars and ZiG, while fees for issuance of new and replacement of bank cards shall not exceed the recovery costs.
To improve cash availability and circulation, the central bank has introduced a new series of banknotes: the upgraded ZiG10, ZiG20, ZiG50, which will come into circulation on April 7, 2026, ZiG100 and ZiG200, which the bank will bring into circulation as it deems necessary.
The old ZiG10 and ZiG20 denominations will remain in circulation alongside the new denomination series.
“The higher ZiG100 and ZiG200 denominations will be gradually issued into circulation in due course, guided by transactional demand and monetary and financial conditions in the domestic economy,” he said.
Dr Mushayavanhu said the banknotes, which carry images of Zimbabwe’s big 5 wild animals, are characterised by improved 100 percent cotton substrate paper and enhanced print quality to extend circulation life.
The public, the central bank said, will access the upgraded BiG 5 banknote series through banking institutions, ATMs, retailers and merchants through the sale of agricultural produce such as cotton, tobacco and maize.
In order to support small-value transactions and reduce pressure on low-denomination banknotes, the ZiG coins already in circulation will remain relevant in the market.
“The Reserve Bank encourages business operators and individuals to make use of the ZiG coins to facilitate change and ensure the divisibility of local currency pricing for cash transactions,” Dr Mushavanhu said.
The bank has also reviewed cash withdrawal limits to ensure greater availability of cash and transactional convenience at minimum costs.
With immediate effect, individuals can now withdraw a maximum of ZiG10 000 per week, while the maximum withdrawal limit for corporates has been increased to ZiG 100 000 per week.
“The Reserve Bank is committed to ensuring that economic agents remain free to choose their preferred means of payment between cash and digital forms.
“As such, the digital agenda will complement the upgraded Big 5 ZiG banknote series, consistent with international best practices in the payments arena,” Dr Mushayavanhu said.
To support the role of mobile money in the digital transaction agenda without compromising financial stability, mobile network operators are now required to align fee exemptions by banks for transactions below US$5 or ZiG equivalent.
The MNOs have also been directed to screen all wallets for ghost users in collaboration with the civil registry department by June 30, 2026. “MNOs should provide evidence to the Reserve Bank of the completion of of tyhe exercise by June 30, 2026,” Dr Mushayavanu said.
The central bank ordered MNOs to ensure that “nano” (ultra-small, short-term, fully digital) loans are underwritten by a registered bank that is authorised to conduct banking business in Zimbabwe, to address the risk associated with money laundering using mobile money platforms.
Economic analysts said the 2026 Monetary Policy Statement signals continuity in the RBZ’s tight monetary posture, with incremental refinements rather than abrupt shifts.
The emphasis on liquidity control, exchange rate transparency, productive lending and asset-backed currency management reflects a deliberate effort to lock in recent stability gains.
They opine that the test lies in consistent implementation.
Bankers Association of Zimbabwe (BAZ) immediate past president, Mr Lawrence Nyazema, said the banking sector broadly welcomed the 2026 Monetary Policy Statement, noting that much of the industry’s submissions had been taken into account.
“We are overall happy with the Monetary Policy as we see that much of what we put forward as a sector has been taken into consideration. Yes, we were hoping for the reduction of the bank policy rate, but the Governor explained it well and we understood him,” he said.
Mr Nyazema described the introduction of the ZiG Denominated Term Deposit Facility (ZiGDTDF) as a significant positive for banks.
“As a sector, we are happy with the new ZiG Denominated Term Deposit Facility (ZiGDTDF). It is a welcome option as it gives banks a place to invest rather than fold their hands and keep funds that are not earning anything,” he said.
Zimbabwe National Chamber of Commerce (ZNCC), chief executive Mr Chris Mugaga, said the central bank had delivered a measured and balanced policy intervention.
“The bigger picture is that the central bank delivered a balanced monetary policy, especially the emphasis on the removal of the 2030 deadline because the deadline was causing a very big discomfort, but after this clarification, it will make life easier,” he said.
Commenting on the bank’s decision to maintain the bank policy rate at 35 percent, Mr Mugaga said while the level remains high by regional standards, the context matters.
“On the 35 percent bank policy rate, which is supposedly the highest in Sub-Saharan Africa, with only Nigeria and Malawi closer to the upper 20 percent, but if you look at the historical events of hyperinflation, it is quite understandable,” he said.
He also applauded the doubling of the Targeted Finance Facility (TFF) for support to key productive sectors of the economy, while urging refinements to ensure it supports productive sectors sustainably.
“For the Targeted Finance Facility (TFF) which is now ZiG1,2 billion from ZiG600 million we applaud it, but as importers capitalising our industry and the facility is in ZiG it has been pushing demand for US dollars so for now what we want is to identify the industry that needs the money and make it long term because if you make it short term people might not borrow,” he said.
Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said retailers were encouraged by continued exchange rate stability and reforms to the foreign exchange system.
“The Governor has also gone on to streamline the costs of banking and this is one area that has been an arduous hill for the members of the public and the transacting business community,” said Mr Mutashu.
“Of course, reducing withdrawal charges as well as incentivising savings and deposits is also very key,” he said.
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