ZiG stability anchors low inflation outlook : CZI

CONSISTENT Zimbabwe Gold (ZiG) stability, seen across the formal and parallel markets, has bolstered a low inflation outlook, signalling firmer monetary management and growing confidence in the economy, the Confederation of Zimbabwe Industries (CZI) has said. In its January 2026 Inflation and Currency Developments Report, CZI noted that between December 2025 and January 2026, ZiG recorded a marginal appreciation in both markets. It said the parallel market premium has remained below 20 percent, from over 100 percent previously, a level significantly lower than that recorded during the same period in 2025.

A narrow and steady open premium in Zimbabwe is crucial in maintaining domestic currency price stability, given that prices in the dual currency monetary regime track exchange rate movements. This stability, CZI said, reflects improved exchange rate management by the Reserve Bank of Zimbabwe and a departure from the volatility that previously fuelled inflationary pressures in local currency terms. According to CZI, the narrowing gap between the official and alternative markets is easing pricing distortions and speculative activity. The industrial lobby’s observations tally with the central bank’s assessment, which, in its recent macroeconomic snapshot, underscored that ZiG monthly inflation averaged 0,4 percent between February and December 2025, reflecting anchored inflation expectations.