Zimbabwe Achieves Lowest Inflation in 29 Years Amid Bold Currency Reforms.
On Monday, January 26, 2026, Zimbabwe’s Ministry of Finance officially announced that the nation’s annual inflation rate plummeted to single digits for the first time since 1997, marking a pivotal milestone in the country’s economic recovery. Data released for January 2026 shows inflation slowing dramatically to 4.1%, a sharp decline from 15% in December 2025 and a staggering 82.7% recorded as recently as September.
Finance Minister Mthuli Ncube characterized the achievement as a “historic moment,” attributing the rapid stabilization to the effectiveness of the gold-backed ZiG (Zimbabwe Gold) currency and the central bank’s implementation of rigorous monetary and fiscal discipline. Analysts note that this 78-percentage-point decline within just four months reflects enhanced foreign exchange stability and improved supply chain conditions that have significantly lowered costs for domestic producers.
The success of the ZiG is viewed as essential for President Emmerson Mnangagwa’s long-term plan to phase out the U.S. dollar and establish a unified national currency by 2030. Introduced in April 2024, the gold-backed currency now accounts for roughly 40% of daily transactions, supported by foreign reserves that rose to $1.2 billion by the end of 2025. While the economy still faces structural challenges—including a persistent parallel market premium of approximately 20%—the current 4.1% rate brings Zimbabwe’s inflation in line with international standards for the first time in nearly three decades. This newfound stability has triggered a surge in foreign investor activity on the Zimbabwe Stock Exchange, signaling a cautious but clear return of global confidence in the country’s economic fundamentals.
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