• Zimbabwe to keep buying gold in 2026 to bolster ZiG currency

• Reserves rise to $1.1 billion, covering about 1.2 months of imports

• IMF warns reserves limited, urges continued monetary and exchange reforms

Zimbabwe will continue buying gold and other precious metals in 2026 to build its foreign exchange reserves and support the stability of its national currency, the ZiG, the country’s central bank governor said on Sunday.

Central bank governor John Mushayavanhu said in an opinion piece published in the Sunday Mail that the strategy would be extended to eventually reach reserves equivalent to three to six months of import cover.

Introduced in April 2024, the ZiG currently accounts for about 40% of daily transactions in Zimbabwe and is backed by foreign exchange reserves held mainly in gold.

To support this framework, the central bank accumulates reserves through direct gold purchases and deliveries from the mining sector. Since late 2022, mining companies have been required to pay half of their royalties in the precious metals they produce.

Mushayavanhu said foreign exchange reserves reached $1.1 billion in mid-December 2025, up from $276 million in April 2024, equivalent to about 1.2 months of import cover.

“The Reserve Bank has placed strong emphasis and is committed to ensuring that ZiG is always and at all times backed by adequate foreign currency reserves, mainly in the form of gold,” the Reserve Bank of Zimbabwe governor said.

These factors may have influenced Finance Minister Mthuli Ncube’s decision not to immediately raise the gold royalty rate to 10% in 2026 from 5% currently. He has said the government would instead wait for the metal’s price to reach $5,000 per ounce. Gold is currently trading at around $4,500 per ounce.

Zimbabwe relies heavily on gold inflows to build up the central bank’s reserves. A tax increase could have encouraged artisanal miners, who account for most national output, to shift sales from official channels to the parallel market.

The central bank’s strategy aligns with recent International Monetary Fund assessments, which note that foreign exchange reserves remain limited and that market confidence in the sustainability of macroeconomic stabilisation is fragile.

The IMF said Zimbabwe’s economic growth is expected to reach 6% in 2025, driven by a strong agricultural season, historically high gold prices and sustained diaspora remittances, before easing to 4.6% in 2026. In this context, the Fund called for continued reforms to the monetary and exchange rate framework.

Emiliano Tossou