Zimbabwe's power-sharing talks are making good progress but no meeting has been set between President Robert Mugabe and Morgan Tsvangirai.

Zimbabwe's central bank on Thursday introduced a new foreign-currency bond to raise money to tackle a serious drought threatening the country, but turned down demands for a general devaluation of the local currency. In an emergency policy statement, Reserve Bank of Zimbabwe Governor Gideon Gono also offered new price incentives for tobacco and gold producers.

President Robert Mugabe returns to Zimbabwe on Wednesday under pressure from fellow African leaders to form a national unity government.

Zimbabwe riot police arrested the country's top opposition leader on Sunday as they suppressed a planned prayer rally in a crackdown on protests against President Robert Mugabe. Witnesses said heavily armed police fought skirmishes with rock-throwing opposition supporters in the Harare township of Highfield.

Internet campaigns calling for protests against the rule of President Robert Mugabe on Tuesday did not lead to any mass gatherings in Zimbabwe.

Zimbabwean President Robert Mugabe's main rival has denounced his plans to nationalise foreign-owned firms as "looting and plunder" by a greedy elite.

Zimbabwe faces a new political storm with President Robert Mugabe pushing for an early election opposed by rivals.

A media rights activist has been detained by police in Zimbabwe, pointing to a crackdown on Zanu-PF dissenters ahead of elections next year.