The Reserve Bank of Zimbabwe (RBZ) has issued new directives aimed at encouraging broader usage of the domestic currency.
These measures include an increase in interest rates for savings and time deposits and the removal of transaction fees for amounts of US$5 or less (or their equivalent in ZWL).
The RBZ Governor, Dr. John Mushayavanhu, outlined these changes in his 2025 Monetary Policy Statement, aimed at sustaining the current economic stability.
The rate on ZiG savings deposits has been raised from 3.5% to 5%, and for time deposits, it has moved from 5% to 7%. For US dollar deposits, the interest rate has increased from 1% to 2.5%, with time deposit rates moving up from 2.5% to 4%.
These measures are designed to enhance the economy’s growth, which has been affected by external challenges like the El Niño-induced drought.
The policy shifts are also part of a broader strategy under the RBZ’s 2025-2029 plan, which focuses on maintaining price stability, encouraging savings, and fostering financial inclusivity.
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To support this, the central bank has also directed that fees be waived for transactions below US$5, including Point of Sale (POS) charges.
It aims to promote the use of digital transactions and e-cash, with plans to ensure that all businesses have POS machines for transactions in both Zambian kwacha and US dollars.
Additionally, the RBZ is working with the Bankers Association of Zimbabwe to address high banking fees and support the use of ZiG.
To further strengthen the local currency, the RBZ has also implemented measures for wholesalers and retailers facing working capital challenges while reviewing limits for international debit and credit cards.
These steps are in line with President Mnangagwa’s vision for economic de-dollarization as part of the National Development Strategy.
Additionally, the RBZ has scrapped weekly limits on foreign exchange purchases for businesses and authorised dealers, and it has introduced new mechanisms to support productive sectors.
