- Zimbabwe central bank suspends new forex retention policy for small-scale gold miners.
- Move follows implementation problems and limited access to banking services.
- Miners return to 100% U.S. dollar retention as sector remains key export earner.
ZIMBAWE’S central bank has decided to put a hold on a recently launched foreign currency retention policy aimed at small-scale gold miners, citing difficulties in implementation and limited access to banking services.
The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe announced that the framework, which allowed for a 90% retention in U.S. dollars and 10% in Zimbabwe Gold (ZiG), would be paused shortly after it was introduced in February.
This policy was intended to encourage foreign currency inflows and promote the use of the ZiG, Zimbabwe’s gold-backed currency.
However, the central bank has indicated that operational challenges have made it tough to implement effectively.
The MPC pointed out “implementation challenges at Fidelity Gold Refinery” and noted that many artisanal miners are unbanked, which restricts their ability to receive local currency payments through formal channels.
Consequently, the committee has decided to suspend the measure until proper logistical systems can be established.
This decision effectively returns small-scale miners to a 100% U.S. dollar retention arrangement for the time being.
Zimbabwe’s gold sector, which is primarily driven by small-scale miners, continues to be the country’s largest source of export earnings and foreign currency inflows.
According to the central bank, total foreign currency inflows reached approximately $3.35 billion in the first two months of 2026, largely supported by gold and platinum exports.
Governor John Mushayavanhu stated that the bank will maintain its current monetary policy despite this shift.
The MPC “will stay the course” by keeping the policy rate at 35% and maintaining statutory reserve requirements at 15% for savings and 30% for demand deposits, he added.
Analysts have said that this reversal underscores the tension between ambitious policy goals and the realities on the ground in Zimbabwe’s predominantly informal mining sector.
The suspension also raises concerns about the speed of Zimbabwe’s efforts to increase the use of the ZiG, especially in areas where financial inclusion is still quite low.
Small-scale miners and industry groups have previously raised concerns about access to banking services and delays in payments under retention frameworks.
The central bank said it would reintroduce the policy once operational and financial systems are aligned.
