By A Correspondent
As Zimbabwe grapples with an escalating economic crisis, the government is scrambling to implement measures it hopes will stabilize the nation’s deteriorating economy. Despite these attempts, experts are skeptical about the effectiveness of the actions, given the severity of the challenges the country faces.
In a bid to counter the spiraling inflation, devaluation of the local currency, and declining investor confidence, the Reserve Bank of Zimbabwe (RBZ) recently announced a series of economic interventions. One of the most notable actions involves reducing exporters’ foreign currency retention thresholds. However, many believe that these actions are merely cosmetic attempts to address much deeper economic issues.
During the 2025 Monetary Policy Statement presentation in Harare this Thursday, RBZ Governor Dr. John Mushayavanhu outlined the bank’s strategy to boost growth and stabilize the currency market. He revealed that exporters’ foreign currency retention thresholds would be lowered, signaling a shift towards deeper reliance on the Zimbabwe Gold (ZiG) for financial transactions.
“To guarantee continued stability in the interbank foreign exchange market, we have augmented the foreign currency supply needed to support the ZiG,” Dr. Mushayavanhu stated. “This means the portion of export proceeds that must be surrendered has increased from 25 percent to 30 percent, effective immediately.”
This move, the governor emphasized, was necessary to bolster Zimbabwe’s currency reserves. However, it also places more pressure on exporters, many of whom are already facing mounting operational challenges. The increased 5 percent surrender requirement, according to Dr. Mushayavanhu, is designed to ensure that exporters mobilize enough ZiG to meet their local currency obligations, including tax payments.
Despite the government’s insistence that these policies are designed to bring stability, critics argue that the root causes of Zimbabwe’s economic collapse—such as a loss of investor confidence, rampant corruption, and mismanagement—remain unaddressed.
“The economy is at a breaking point,” said one economist .
“These measures, while they may provide short-term relief, do little to fix the underlying issues that are driving inflation and unemployment through the roof.”
The use of ZiG, a government-backed digital currency, has been promoted as a solution to the country’s cash shortages and to limit the dependence on foreign currencies. However, Zimbabweans remain wary, given the persistent depreciation of the Zimbabwean dollar and the government’s history of failed economic policies.
“Zimbabweans have little trust in the government’s ability to manage the economy,” said the economist. “The crisis is too deep for cosmetic measures to have any lasting impact.”
As the central bank continues to refine its foreign exchange management system, many Zimbabweans fear that without significant structural reforms, the country will continue to spiral into a deeper economic abyss.