{"id":264948,"date":"2025-11-04T14:26:05","date_gmt":"2025-11-04T15:26:05","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=264948"},"modified":"2025-11-04T16:04:04","modified_gmt":"2025-11-04T16:04:04","slug":"imf-says-zim-highly-dollarised-as-local-industry-calls-for-further-disinflation","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/imf-says-zim-highly-dollarised-as-local-industry-calls-for-further-disinflation\/","title":{"rendered":"IMF says Zim highly dollarised as local industry calls for further disinflation"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

The International Monetary Fund (IMF) says Zimbabwe\u2019s economy remains highly dollarised, with any de-dollarisation policies needing gradual implementation while the Confederation of Zimbabwe Industries has called for further disinflation strategies into 2026 to correct pricing and manage stubbornly high inflation.<\/span><\/p>\n

Zimbabwe is pushing for an end to the use of US Dollars across the economy by 2030, coinciding with a possible two year extension of President Emmerson Mnangagwa\u2019s rule originally scheduled to end in 2028. Mnangagwa\u2019s party, Zanu PF party has resolved to extend the Zimbabwean leader\u2019s tenure and to end dollarisation by 2030.<\/span><\/p>\n

However, the IMF has said in an interview that \u201c<\/span>Zimbabwe remains highly dollarized<\/span>\u201d with any confidence in a local currency needing to \u201c<\/span>be built through credible fiscal and monetary policies, a strengthened FX market, and the absence of quasi-fiscal operations such as providing subsidies or financing government programs<\/span>\u201d<\/span> outside of the budget<\/span> framework.<\/span><\/p>\n

The Zimbabwe Gold (ZiG) local currency Zimbabwe says is backed by foreign currency reserves is largely shunned by locals for transactions. The IMF said Zimbabwe has to ringfence any de-dollarisation efforts by a stable policy environment that will accrue confidence for the local unit of exchange.<\/span><\/p>\n

\u201cC<\/span>onfidence in macro-economic policy and the currency is reinforced by a predictable, rules-based policy environment and progress on economic governance.<\/span> <\/span>Advancing these reforms\u2014alongside clear, consistent economic policy implementation\u2014would help anchor expectations and bolster confidence<\/span>,\u201d the IMF\u2019s chief of mission to Zimbabwe, <\/span>Wojciech Stanislaw Maliszewski<\/span>, said by email.<\/span><\/p>\n

The Confederation of Zimbabwe Industries (CZI) has called for further disinflation strategies over the next few months. It argued that inflation should be lowered further.<\/span><\/p>\n

\u201cA<\/span>n inflation rate of 30% is still too high, calling for more disinflation strategies into 2026.<\/span> <\/span>The policy target is to have an annual ZiG inflation of 30% by December 2025<\/span>,\u201d said Cornelius Dube, chief economist for the CZI.<\/span><\/p>\n

According to the IMF, the <\/span>Reserve Bank of Zimbabwe (RBZ) <\/span>has been tightening <\/span>its policy stance<\/span> since September last year after <\/span>halting monetary financing<\/span>. This had h<\/span>elped <\/span>to <\/span>lower inflation <\/span>from elevated highs while also easing <\/span>exchange-rate pressures.<\/span><\/p>\n

\u201c<\/span>The gap between official and parallel market rates narrowed, and ZiG inflation declined by mid-2025, though the economy remains highly dollarized<\/span>,\u201d said Maliszewski.<\/span><\/p>\n

For the month of October, Zimbabwe\u2019s inflation in ZiG local currency dropped to <\/span>32.7% <\/span>after <\/span>shedding 50 percentage points from a rate of 82.7% in the month of September 2025<\/span>. on the other hand, t<\/span>he USD month-on-month inflation for October 2025 increased to 0.3% from a rate of 0% in the month of September <\/span>2025.11.4<\/span><\/p>\n

The CZI has explained that this <\/span>means <\/span>that <\/span>prices in USD terms remained stable as the observed increase is minimal.<\/span><\/p>\n

However, CZI believes that \u201cw<\/span>hen the de-dollarisation programme gets rolled out, the inflation differential between ZiG and USD will matter in the decision of which currency to use<\/span>\u201d<\/span> in transactions. <\/span><\/p>\n

\u201c<\/span>USD price stability would make the USD attractive as both a transaction and savings currency. ZiG stability has to be sustainable for a very long time before it can also be considered a close substitute to the USD<\/span>,\u201d said Dube.<\/span><\/p>\n

This comes as Zimbabwe\u2019s <\/span>USD year-on-year inflation <\/span>has continued on a <\/span>declining trend which started in July 2025.<\/span><\/p>\n

In October 2025,<\/span> Zimbabwe\u2019s<\/span> USD inflation declined to 13% from <\/span>the <\/span>13.4% registered in the month of September. However, a 13% USD inflation is still very high, as it means that savings in USD lost about 13% purchasing power between October 2024 and October 2025<\/span>, said the CZI.<\/span><\/p>\n

\u201c<\/span>With the USD being the main savings currency, it is critical for its inflation to remain very low if savings are to be protected.<\/span>\u201d<\/span><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

The International Monetary Fund (IMF) says Zimbabwe\u2019s economy remains highly dollarised, with any de-dollarisation policies needing gradual implementation while the Confederation of Zimbabwe Industries has called for further disinflation strategies into 2026 to correct pricing and manage stubbornly high inflation.Zimbabwe is pushing for an end to the use of US Dollars across the economy by 2030, coinciding with a possible two year extension of President Emmerson Mnangagwa\u2019s rule originally scheduled to end in 2028. Mnangagwa\u2019s party, Zanu PF party has resolved to extend the Zimbabwean leader\u2019s tenure and to end dollarisation by 2030.However, the IMF has said in an interview that \u201cZimbabwe remains highly dollarized\u201d with any confidence in a local currency needing to \u201cbe built through credible fiscal and monetary policies, a strengthened FX market, and the absence of quasi-fiscal operations such as providing subsidies or financing government programs\u201d\u00a0outside of the budget\u00a0framework.The Zimbabwe Gold (ZiG) local currency Zimbabwe says is backed by foreign currency reserves is largely shunned by locals for transactions. The IMF said Zimbabwe has to ringfence any de-dollarisation efforts by a stable policy environment that will accrue confidence for the local unit of exchange.\u201cConfidence in macro-economic policy and the currency is reinforced by a predictable, rules-based policy environment and progress on economic governance.\u00a0Advancing these reforms\u2014alongside clear, consistent economic policy implementation\u2014would help anchor expectations and bolster confidence,\u201d the IMF\u2019s chief of mission to Zimbabwe,\u00a0Wojciech Stanislaw Maliszewski, said by email.The Confederation of Zimbabwe Industries (CZI) has called for further disinflation strategies over the next few months. It argued that inflation should be lowered further.\u201cAn inflation rate of 30% is still too high, calling for more disinflation strategies into 2026.\u00a0The policy target is to have an annual ZiG inflation of 30% by December 2025,\u201d said Cornelius Dube, chief economist for the CZI.According to the IMF, the\u00a0Reserve Bank of Zimbabwe (RBZ)\u00a0has been tightening\u00a0its policy stance\u00a0since September last year after\u00a0halting monetary financing. This had helped\u00a0to\u00a0lower inflation\u00a0from elevated highs while also easing\u00a0exchange-rate pressures.\u201cThe gap between official and parallel market rates narrowed, and ZiG inflation declined by mid-2025, though the economy remains highly dollarized,\u201d said Maliszewski.For the month of October, Zimbabwe\u2019s inflation in ZiG local currency dropped to\u00a032.7%\u00a0after\u00a0shedding 50 percentage points from a rate of 82.7% in the month of September 2025. on the other hand, the USD month-on-month inflation for October 2025 increased to 0.3% from a rate of 0% in the month of September\u00a02025.11.4The CZI has explained that this\u00a0means\u00a0that\u00a0prices in USD terms remained stable as the observed increase is minimal.However, CZI believes that \u201cwhen the de-dollarisation programme gets rolled out, the inflation differential between ZiG and USD will matter in the decision of which currency to use\u201d\u00a0in transactions.\u00a0\u201cUSD price stability would make the USD attractive as both a transaction and savings currency. ZiG stability has to be sustainable for a very long time before it can also be considered a close substitute to the USD,\u201d said Dube.This comes as Zimbabwe\u2019s\u00a0USD year-on-year inflation\u00a0has continued on a\u00a0declining trend which started in July 2025.In October 2025,\u00a0Zimbabwe\u2019s\u00a0USD inflation declined to 13% from\u00a0the\u00a013.4% registered in the month of September. However, a 13% USD inflation is still very high, as it means that savings in USD lost about 13% purchasing power between October 2024 and October 2025, said the CZI.\u201cWith the USD being the main savings currency, it is critical for its inflation to remain very low if savings are to be protected.\u201dBUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":264950,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-264948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=264948"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264948\/revisions"}],"predecessor-version":[{"id":264949,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264948\/revisions\/264949"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/264950"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=264948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=264948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=264948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}