The new
directives are part of a coterie of bold policy measures RBZ Governor Dr John
Mushayavanhu announced in his 2025 Monetary Policy Statement to anchor the
prevailing economic stability.
Dr Mushayavanhu
told journalists and bank executives in Harare yesterday that its
interventions, couched around a tight monetary policy stance, had restored
exchange rate and inflation stability.
Interest on ZiG
savings account deposits has been hiked from 3,5 percent to five percent and
from five percent to seven percent for time deposits.
Similarly, the
central bank has increased interest on US dollar savings account deposits from
one percent to 2,5 percent while time deposits will now attract four percent
from 2,5 percent.
The latest
policy measures have been tailored along the key pillars of the Reserve Bank’s
new Strategic Plan (2025-2029), which exclusively focuses on its core mandate
of maintaining price and financial stability. Dr Mushayavanhu said the Strategy
Plan was aligned to the “Back-to-Basics” thrust aimed at balancing
“Confidence-Trust-Credibility-Efficiency-Stability-Growth” outcomes.
He said the new
measures would support the country’s targeted 6 percent growth, a huge leap
following the restricted two percent expansion in 2024, when the El
Nino-induced drought curtailed growth.
Dr Mushayavanhu
said the minimum interest rates for savings and time deposits in both ZiG and
US dollars had been reviewed upwards, with immediate effect, in response to
recent stakeholder concerns and the need to reward depositors.
“The Reserve
Bank encourages banks to offer depositors more than the stipulated minimum
deposit rates, to promote a banking and savings culture in the economy,” Dr
Mushayavanhu said.
The central
bank chief said domestic stakeholders consulted by the bank bemoaned the
current high levels of bank charges obtaining in the banking sector.
The RBZ, he
said, will continue to ensure that banks strictly adhere to a policy compelling
them to exempt from bank charges all accounts that maintain a balance below
US$100 or its equivalent in ZiG.
“In addition,
Point of Sale (POS) transactions for amounts less than US$5 or its equivalent
in ZiG are also exempted from transaction charges, for both banking
institutions and Payment System Providers (PSPs),” Dr Mushayavanhu said.
He said the
bank was also working with the Bankers Association of Zimbabwe and payment
service providers (PSPs) to come up with mechanisms to minimise bank charges
and encourage use of e-cash to promote ZiG.
“These
mechanisms will be finalised and communicated before the end of the first half
of 2025,” Dr Mushayavanhu said.
To enhance
digital transactions in the economy, Dr Mushayavanhu said banks and PSPs had
been directed, with immediate effect, to ensure that every business account
(new and existing) was issued with POS machine or any other approved digital
mechanism, which can facilitate transactions in both ZiG and US dollar.
“Any dormant
POS machines or digital transactional gadgets should be reported to the Reserve
Bank”.
To promote the
use of normal banking channels on all domestic trading transactions, the bank
has advised local authorities and other licensing entities to ensure that all
applicants for trading licences (individuals/ corporates) have a bank account
and a functional POS machine at the point of licensing and/or renewal.
Dr Mushayavanhu
said the central bank had acted on complaints from stakeholders during the
consultative meetings alleging that some mobile money operators were applying
discriminatory pricing practices against ZiG in preference for US dollar
transactions. The RBZ Governor said efforts to promote ZiG were in line with
the Vision enunciated by President Mnangagwa and provided for in the National
Development Strategy policy framework to dedollarise the economy.
In order to
promote the use of prepaid international debit and credit cards, Dr
Mushayavanhu said the Reserve Bank had, with immediate effect, reviewed upwards
the annual limit from US$500 000 to US$1 million.
To address
working capital challenges recently experienced by some wholesalers and
retailers, the central bank has extended the targeted finance facility to these
critical sectors to enable them to restock.
In January
2025, the central bank introduced the (TFF) to enhance banks’ support to
productive sectors. The TFF is financed from the pool of banks’ statutory
reserves held at the central bank, implying that there is no new money created
to finance it.
The operational
modalities of the facility have already been issued to banks.
To ensure the
effectiveness of the TFF, beneficiaries of the funds can access the interbank
market to access the requisite foreign currency, upon submitting bonafide
invoices to support their import requirements.
Previously,
beneficiaries under the facility were not allowed to use it to purchase hard
currency on the interbank market to curtail speculative tendencies.
Dr Mushayavanhu
has also scrapped limits on funds that can be accessed from the foreign
exchange interbank market that had been set at US$500 000 and US$100 000 for
Primary and Secondary users of foreign exchange, respectively, every week per
entity.
Further, the
RBZ Governor announced that authorised dealers were now expected to on-sell
foreign exchange purchased from willing sellers, including the Reserve Bank, at
a margin consistent with international best practices, after scrapping the
previous limit of five percent. Herald
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