ZiG Stability, 4.1% Inflation, US$1.4B Reserves, New Banknotes

SNAPSHOT ON RECENT MONETARY, CURRENCY, PRICE AND FINANCIAL DEVELOPMENTS For Quarter 1 2026

The Reserve Bank will continue to align money supply growth with real economic activity in 2026. Liquidity conditions will remain consistent with the inflation objective of preserving ZiG stability and ensuring sustainable economic growth. The monetary policy framework will remain anchored on transparency, market‑based instruments and strict adherence to sustained build‑up of foreign reserves buffer. The Reserve Bank will also continue to enhance coordination with fiscal authorities to ensure that monetary and fiscal policies remain mutually reinforcing.

KEY MACROECONOMIC AND FINANCIAL INDICATORSMAJOR HIGHLIGHTS AND ACHIEVEMENTS IN Q1 2026

This Quarterly Snapshot provides key monetary and financial sector developments during the first quarter of 2026, highlighting continued consolidation of macroeconomic stability under the current monetary policy framework. Reflecting the adoption of communication as an integral tool of monetary policy, the Reserve Bank remains committed to providing timely, high frequency indicators and evidence‑based insights on prevailing economic conditions underpinning the monetary policy stance. Notable achievements realised in the first quarter of 2026 include the following꞉

• Attainment of single digit annual local currency inflation of 4.1% in January 2026 for the first time in over 3 decades.• Sustained low and stable ZiG annual inflation at 3.8% in February and 4.4% in March 2026. • Stability in month‑on‑month ZiG inflation averaging 0.2% from January to March 2026. • Continued exchange rate stability, with the interbank exchange rate oscillating around ZiG25 per US dollar and the parallel market premium contained below 20%. • Reserve money growth kept under check, with total local currency reserve money amounting to ZiG5.8 billion as at end March 2026, up from ZiG5.3 billion in December 2025.• Continued non‑central bank financing of Government expenditure.• Sustained increase in foreign currency receipts amounting to US$4.97 billion in first three months to March 2026, up from US$3.22 billion in the same period in 2025. • The increase in foreign currency receipts resulted in a trade surplus of US$109.9 million and US$46.4 million in January and February 2026, KEY MONETARY POLICY INDICATORS꞉ AS AT 31 MARCH 2026respectively.• Consistent accumulation of foreign currency reserves, which stood at US$1.4 billion, representing about 1.5 months of import cover as at 31 March 2026.• Foreign currency reserves backing the local currency, equivalent to around ZiG Inflation (March 2026)6 times cover of ZiG reserve money and almost double the total ZiG deposits. • Launch of the upgraded BiG 5 ZiG Banknote Series to support wider use of the local currency, complemented by an extensive nationwide education and awareness campaign. • Continued soundness, resilience and stability in the financial sector and the national payment system. The 2026 first quarter macroeconomic performance reflected greater price, currency and exchange rate stability. To safeguard the stability and ensure that inflation expectations remain well anchored, the Reserve Bank will continue to (Jan to Mar 2026)pursue prudent monetary policy measures that promote price stability, while supporting sustainable economic growth. over US$590 million (proj.) US$4.97 billion

CumulativeThe data included in this Quarterly Snapshot is sourced from Official data providers, the Reserve Bank of Cumulative Foreign Payments Zimbabwe for monetary and financial statistics and the Zimbabwe National Statistics Agency (ZIMSTAT) for Foreign Currency Receipts (Apr 2024 to March 2026)inflation and international trade statistics. (Apr 2024 to March 2026) US$1.4 billion ‑ Import Cover US$19.67 billionUS$32.7 billionNB꞉ some data for the respective quarter may be provisional and subject to revisions. Equivalent꞉ 1.5 Months 54

DEVELOPMENTS IN WEEKLY BANK LOANSZIG MONEY SUPPLY (M3) DEVELOPMENTS

ZiG Loan Growth (%) Foreign Currency Loan Growth (%)(October 2024 to March 2026) (October 2024 to March 2026)

Source꞉ Reserve Bank of Zimbabwe, 2026 Source꞉ Reserve Bank of Zimbabwe, 2026 Source꞉ Reserve Bank of Zimbabwe, 2026

• The Reserve Bank's monetary policy stance has supported the stability of both ZiG and US dollar‑denominated loans growth.• The month‑on‑month growth in the local currency component of broad money (M3) remained under check and averaged about 2.3% in the first quarter of 2026, • In the first quarter of 2026, the weekly average growth of ZiG and foreign currency denominated loans was 0.1% and 0.51%, respectively.largely reflecting the Central Bank's prudent monetary policy stance. • The share of ZiG loans to total loans stood at 16.51% as at March 2026.• Money supply growth is expected to remain stable and aligned to the envisaged 6 7growth and the desired inflation path.

EXCHANGE RATE DEVELOPMENTS FOREIGN CURRENCY RECEIPTS AND PAYMENTS

Source꞉ Reserve Bank of Zimbabwe, 2026

• Foreign currency receipts have remained robust, consistently covering external • The Real Effective Exchange Rate (REER) remained stable during the period • The exchange rate was stable during the first quarter of 2026, averaging ZiG25.59 payment obligations and yielding significant surpluses.under review, hovering around its benchmark level throughout the first two per US dollar.• The surpluses averaged US$548.4 million per month from January to March 2026, months of 2026.• The parallel market exchange premium also remained within 20% for most of the providing liquidity to support domestic economic transactions. • The continued stability in the REER signifies that the exchange rate remained first quarter of 2026. • For the first quarter of 2026, total foreign currency inflows amounted to US$4.97 aligned with the macroeconomic fundamentals and the Reserve Bank's goal • Foreign exchange market interventions amounting to US$1.6 billion since April billion, against total currency payments of US$3.32 billion.of price stability during the first quarter 2026.2024 have contributed to the smooth functioning of the foreign exchange market under the Willing‑Buyer Willing‑Seller (WBWS) arrangement.

TRENDS IN FOREIGN RESERVES, IMPORT COVER AND THE CURRENT ACCOUNT BALANCEFOREIGN CURRENCY RECEIPTS

Source꞉ Reserve Bank of Zimbabwe, 2026

• Total foreign currency inflows increased by 54.1% to US$4.97 billion in the first three months of 2026, compared to US$3.22 billion in the same period in 2025. • At the close of March 2026, foreign exchange reserves were valued at US$1.4 billion, providing an import cover of 1.5 months.• Export earnings dominated the basket of foreign currency receipts, averaging 71% of total foreign currency receipts in the first quarter of 2026, followed • The expansion of foreign currency inflows has contributed to a steady build‑up of reserves, which remains a cornerstone for domestic exchange rate stability.by Diaspora Remittances at 14.8% and loan proceeds at 7.3%.• Higher exports of tobacco and favorable prices for gold, PGMs, and lithium • The upward trend in merchandise trade, which shifted into surplus in July 2025, remained consistent during the for two months of 2026.drove export performance. • The country is expected to record a current account surplus of over US$590.0 million in Q1 2026, compared to a deficit of US$19.7 million recorded in Q1 2025.• Foreign currency receipts are expected to continue to grow in 2026, driven by firming international mineral prices and resilient remittance inflows.

10 11 ZIG RESERVE MONEY, BANK DEPOSITS SUSTAINED LOW AND STABLE SINGLE DIGIT INFLATIONAND FOREX RESERVE COVER

Source꞉ Reserve Bank of Zimbabwe, 2026

• Month‑on‑month ZiG inflation averaged around 0.2% during the first quarter of 2026, supported by the prudent monetary policy stance. • The Reserve Bank continued the accumulation of foreign currency reserves backing the ZiG during the first quarter of 2026.• Annual ZiG inflation reached single digit at 4.1% in January 2026 for the first time in over 3 decades and was sustained at 4.4% in March 2026 despite • Foreign currency reserves increased to US$1.4 billion in March 2026, sufficient inflationary pressures emanating from the recent oil price shock owing to geopolitical tensions from the US‑Israel‑Iran conflict. to cover about 6 times the stock of ZiG reserve money and about double the • Annual inflation is expected to temporarily increase in the near term to June 2026, before returning to its steady state levels. ZiG deposits.• The Reserve Bank maintained the Bank Policy Rate at 35% at its March 2026 Monetary Policy Committee (MPC) quarterly meeting to contain second round • The build‑up of foreign currency reserves is critical for the lasting stability of ZiG.effects of the fuel price increase in the economy.

12 13 NATIONWIDE EDUCATION AND ZIG OFFICIAL LAUNCH AND INTRODUCTION OF THE UPGRADED BIG 5 ZIG BANKNOTE SERIES AWARENESS CAMPAIGN

Issued Into The success of any currency is underpinned by confidence in banknotes Circulation which is determined by the ability of the public to recognise the currency structures and their security featureson 7 April

• The introduction of the BiG 5 ZiG Banknote Series marks a significant milestone, featuring an appealing design, enhanced durability and security elements that align with international best practice.• The Reserve Bank undertook comprehensive nationwide ZiG education and awareness campaigns from 1 to 31 March 2026 to sensitise the public on the upgraded BiG 5 ZiG Banknote Series. • Commercial banks commenced the disbursement of the new banknotes to the public from 7 April 2026. 14 Map of Centres Covered during the ZiG Awareness Campaign ECONOMIC AND INFLATION OUTLOOK
• The Reserve Bank conducted a Nationwide Education and Awareness Campaign on the BiG 5 ZiG Banknote Series from 1‑31 March 2026, reaching 3,783 centers with over 1.5 million participants across the 64 districts in all Provinces. Despite a mid‑season dry spell that affected agriculture, the economy is expected to grow by 5% in 2026. • The Reserve Bank received an overwhelming positive response on the upgraded BiG 5 In light of the elevated international oil prices, the Reserve Bank will continue to assess evolving domestic and international economic developments, outlook and the ZiG Banknotes. Business and general public expressed their readiness to use the balance of risks to ensure that annual inflation remains low and stable in single digit levels.upgraded notes. The exchange rate is anticipated to remain stable with the premium continuing to narrow and contained at levels below 20% in 2026.• Business and communities commended the Reserve Bank for engaging them and The positive reception of the recent launch and issuance of the upgraded BiG 5 ZiG Banknote series, is expected to engender trust, confidence and credibility to deepen highlighted the importance of the awareness campaigns, which helped in understanding domestic currency usage and consolidate price and exchange rate stability.the rationale, features and design of the upgraded BiG 5 ZiG Banknote Series. Going forward, the Reserve Bank will continue to "walk the talk" and "stay the course" through prudent monetary policy management supported by deliberate efforts to • The awareness campaign was also critical for the Reserve Bank to receive feedback on promote the demand for the local currency and entrench overall macroeconomic stability.monetary policy and currency management, which included the public's call to ensure that fuel and passports are payable in local currency. 15• The Reserve Bank explained that at the introduction of ZiG in 2024, the country had low foreign reserves, which could not support critical imports, including fuel. Since then, the Reserve Bank has been aggressively building reserves as one of the conditions precedent DEFINITIONS AND EXPLANATORY NOTESfor the exclusive use of local currency in the economy. • As reserves continue to grow towards the recommended threshold of 3 to 6 months import cover, the economy will be in a position to support critical imports allowing for payment of fuel in ZiG.Monthly Inflation꞉ Measures the rate of change in the Consumer Price Index (CPI) from one month to the next. Through this comprehensive awareness campaign, the Reserve Disinflation꞉ Disinflation refers to a deceleration in the rate of inflation and occurs when the general price level is still increasing but at a slower pace than before. Reserve Money꞉ Measures the stock of the Central Bank's most liquid liabilities, which include currency issued, statutory reserves and banks' excess reserves at RBZ. Bank ensured that no one and no place is left behind. Broad Money꞉ Known as money supply, measures the total stock of banking sector liabilities including all deposits and banknotes and coins (currency) in circulation. Total Deposits꞉ Measures the amount of all deposits in the banking sector, inclusive of foreign currency denominated deposits. Total Foreign Reserves in ZiG Backing the Local Currency꞉ Measures the value of cash, foreign exchange reserves including gold and other precious minerals, backing the stock of ZiG reserve money or ZiG deposits in the banking sector.

Non‑Performing Loans꞉ Measures the value of loans that have not met scheduled (re)payments for 90 days or more compared to total loans in the banking sector. Market Liquidity Position꞉ Refers to the amount of liquidity in the market comprising of excess reserves (banks' deposits at Reserve Bank) and the total holding of non‑negotiable Dr. John Mushayavanhucertificates of deposits (NNCDs), which is available for banks to effect transactions through the national payment system platforms. A positive position signifies market surplus while a Governornegative position would imply a shortage.

Cash and Nostro Balances꞉ Refers to the amount of foreign currency held by the Reserve Bank in cash and balances held with other banks outside Zimbabwe. 17 April 2026 Gold Holding (kgs)꞉ Refers to the total volume in kilograms of gold that the Reserve Bank of Zimbabwe holds. Gold Holdings Value꞉ Measures the value of the total volume of gold held by the Reserve Bank expressed in ZiG millions or US dollar millions. Other Reserves (in kind royalties)꞉ refers to the value of other minerals excluding gold that are received by the Reserve Bank as royalties. Nominal Effective Exchange Rate(NEER)꞉ is the ratio of an index of a currency's average exchange rate for a month to a weighted average of exchange rates for currencies of selected countries normally the country's main trading partners.

Real Effective Exchange Rate (REER) ꞉ is a measure of the NEER adjusted to an index of consumer price indices (CPIs) of a country's main trading partners. Equilibrium Exchange Rate꞉ refers to the level of the exchange rate that is consistent with economic fundamentals where the economy experiences both internal (price stability and sustained growth) and external balance (sustainable current account position).

Uncovered Foreign Currency Demand꞉ Refers to the total demand for foreign exchange reported by Authorized Dealers to the Reserve Bank, which could not be met by the supply of foreign exchange in the willing buyer - willing seller (WBWS) market.

Willing‑Buyer Willing‑Seller (WBWS) Exchange Rate꞉ Refers to the average ZiG to US$ exchange rate determined in the FX market by Authorized Dealers. Implied Exchange Rate꞉ Is the exchange rate implied by the ratio of ZiG bank deposits expressed in ZiG to foreign currency reserves covering ZiG expressed in US dollars.