THE Reserve Bank of Zimbabwe (RBZ) is expected to deliver its 2026 Monetary Policy Statement (MPS) today, and expectations are high.
After more than two years of economic turbulence — marked by the introduction of Zimbabwe Gold (ZiG) in April 2024, persistent inflation concerns, and tight liquidity conditions — Zimbabweans are looking for clarity, credibility and realism in the central bank’s outlook.
There have been some encouraging signs on the inflation front. According to the RBZ’s own reports, ZiG inflation has been on a sustained downward path, with month-on-month inflation averaging low single digits and annual inflation expected to continue easing in early 2026. This disinflation trajectory was supported by a tight monetary stance and prudent money supply management throughout 2025.
However, such technical trends are not yet fully reflected in everyday economic life, where many Zimbabweans still feel the pinch of price changes and limited currency availability.
It is in this context that the MPS must be rooted in honesty about what the central bank can realistically achieve. Official targets — whether for inflation, exchange rate stability or money supply — must align with economic fundamentals. Overly optimistic projections that do not resonate with lived realities only deepen public scepticism and undermine trust. Credibility, once lost, is hard to regain.
There is also concern that the reported strength of ZiG is, to a significant extent, administrative rather than organic. Artificially propping up a currency can create an illusion of stability, even when the underlying supply remains scarce and economic agents gravitate back to foreign currencies. Confidence in money is rooted in consistent policy, transparent communication and tangible economic outcomes.
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At the same time, public frustration is growing over high bank charges, which continue to undermine the very digital payments ecosystem that the RBZ and banks say they are trying to promote. In the first half of 2025, Zimbabwe recorded 381 million electronic transactions valued at ZiG1,2 trillion across RTGS, cards, mobile money and online platforms. This demonstrates remarkable adoption and a genuine shift towards cashless systems.
But prohibitive fees for online transactions, account maintenance and money transfers are discouraging formal banking use and pushing economic activity back into informal channels.
Countries around the world are accelerating their transition to cashless economies to enhance efficiency, reduce costs and increase financial inclusion. Zimbabwe must do the same, and this will require not just policy exhortations but meaningful action to lower fees, streamline payment infrastructure and expand access.
The central bank should be at the forefront of championing this transformation.. If the 2026 MPS embraces realistic targets, reinforces efforts to deepen digital financial inclusion and demonstrates a willingness to address long standing structural constraints, it could help rebuild confidence — not just in numbers on a page, but in everyday economic life.
The credibility of the RBZ, and with it Zimbabwe’s monetary future, depends on it.