Wedoany.com Report-Dec.29, John Mushayavanhu, the Governor of the Reserve Bank of Zimbabwe, recently announced that the country's central bank plans to continue strategic purchases of mineral resources to expand the national foreign exchange reserves. This policy is part of Zimbabwe's broader strategy aimed at stabilizing the economy and laying the groundwork for its future adoption of a single currency system.

In comments published by official media, Mushayavanhu stated, "The Reserve Bank is confident that maintaining the current growth trend in foreign exchange reserves will enable it to achieve its expected targets in the medium to short term, thereby facilitating a smooth transition to a single currency system." He indicated that through strategies such as the continuous purchase of mineral resources, the central bank is committed to increasing the scale of its foreign exchange reserves. Data shows that as of last December, the country's foreign exchange reserves had increased from $276 million in April of the same year to $1.1 billion.

The central bank's foreign exchange accumulation strategy encompasses several measures, with a key component being the systematic procurement of mineral resources. This includes collecting a portion of mining royalties in kind, as stipulated by regulations, and directly purchasing precious metals such as gold. The strategy aims to gradually build foreign exchange reserves to a level sufficient to cover three to six months of imports by strengthening the external economic sector.

The Governor further explained, "This will be achieved through sustained export controls, strategic mineral purchases, and our robust external economic sector." The ongoing procurement of mineral resources and foreign exchange accumulation represent one of the core measures Zimbabwe is taking to build a more resilient monetary system.