Zimbabwe’s gold reserves increase more than 300% in two years

Zimbabwe’s gold reserves have increased by more than 300 per cent in just two years following a government policy requiring gold producers to pay royalties in physical bullion, according to Zimbabwe Broadcasting Corporation (ZBC), a partner of TV BRICS.

The sharp rise in reserves is being viewed as a major factor supporting the stability of the country’s currency and strengthening broader macroeconomic conditions.

Officials reported that Zimbabwe’s gold reserves have grown from just over one tonne in April 2024 to 4.4 tonnes this month. During a recent visit to the central bank’s bullion vaults, President Emmerson Mnangagwa described the development as evidence of successful economic reforms and stronger financial management.

Economists say the rapid increase in reserves has improved confidence in the ZiG currency (Zimbabwe Gold) by providing stronger asset backing. According to analysts, the current reserve levels demonstrate the central bank’s ability to support the domestic currency.

Meanwhile, economists stated that the larger reserves could help reinforce exchange-rate stability by providing stronger backing for the amount of the currency currently in circulation.

With 4.4 tonnes of bullion reserves, Zimbabwe now ranks among the leading gold reserve holders in Africa. Analysts believe continued accumulation could support the country’s long-term goal of advancing towards greater monetary sovereignty.