Zimbabwe’s broad money supply (M3) stock reached ZiG141.1 billion in May 2026, with monetary developments indicating sustained progress in containing ZiG reserve money growth and anchoring currency and exchange rate stability.

According to data released in the 2026 Mid-Term Economic Review, the May total represents a 30.6% increase from the ZiG108.1 billion recorded in December 2025.

The overall expansion in money supply was largely driven by a 29.2% rise in the foreign currency component of broad money, which grew from ZiG87.9 billion to ZiG113.6 billion over the five months.

The scale of this increase highlights the ongoing dominance of foreign currency deposits within the economy’s broader liquidity structure.

Simultaneously, the local currency component of M3 registered a 36.8% expansion between December 2025 and May 2026, rising from ZiG20.2 billion to ZiG27.6 billion.

This growth in the local currency share, alongside sustained exchange rate stability, signals an improvement in market confidence toward the ZiG.

Households and commercial enterprises are increasingly opting to hold and execute transactions in local currency balances rather than immediately converting holdings into foreign exchange reserves.

Treasury officials attributed the controlled month-on-month trajectory of local currency broad money growth to a cautious monetary policy stance, which continues to buffer the market against underlying inflation and exchange rate volatility.

The Ministry said reserve money growth was stable and contained during the first five months of 2026, due to the implementation of prudent monetary policy.

Reserve money stock increased by 19.8%, from ZiG29.4 billion in December 2025 to ZiG35.2 billion in May 2026.

“The overall trajectory reflects a well-managed and stable monetary framework. The reserve money stock was largely made up of statutory reserves in foreign currency (65.9%) and foreign currency excess reserves (14%), while local currency statutory reserves, local currency excess reserves and currency issued comprised the remainder,” the Mid-Term Economic Review said.

It added that while the local currency component of reserve money grew by 30.4% from ZiG5.3 billion to ZiG6.9 billion over the period, the growth is within the reserve monetary target for the second quarter.