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HARARE, Aug 7(Reuters) – Zimbabwe’s gold reserves have surged to 3.4 tonnes as of June 30 from 1.6 tonnes on the same date last year, central bank Governor John Mushayavanhu said on Thursday.

In a mid-term monetary policy statement, Mushayavanhu said the Reserve Bank of Zimbabwe (RBZ) had significantly boosted its foreign currency and gold reserves thanks to a sharp rise in foreign currency inflows.

The bank’s gold holdings have nearly tripled since the launch of the ZiG, a gold-backed currency introduced in April 2024, which replaced the Zimbabwe dollar.

Mushayavanhu said the RBZ would continue building both gold and foreign currency reserves to support the stability of the ZiG and provide sufficient import cover for the economy.

He said between January and June 2025, Zimbabwe recorded inflows amounting to $7.2 billion from $5.9 billion recorded in the same period in 2024.

The increase in reserves, he said, was driven largely by export earnings, remittances, and a government directive requiring mining companies to remit 50% of mineral royalties in kind.

He said the central bank would continue to accumulate reserves in line with regional benchmarks of 3-6 months of import cover.

The reserve build-up comes as Zimbabwe continues its technical engagement with the International Monetary Fund under a Staff Monitored Programme (SMP). Under the SMP, Zimbabwe needs to demonstrate fiscal discipline, improve exchange rate management, and rebuild confidence in its monetary system.

Mushayavanhu in June told Reuters the bank would actively pursue a strategy to accumulate reserves and what he described as an adequate buffer of foreign reserves for ZiG stability as well as provide sufficient import cover for the economy.

(Reporting by Chris Takudzwa Muronzi; Editing by Sharon Singleton)