Business Reporter
The Reserve Bank of Zimbabwe (RBZ) has announced plans to phase out the current multi-currency system by 2030, with the ZiG set to become the sole legal tender for domestic transactions.
Zimbabwe is presently operating under a dual framework where the ZiG circulates alongside foreign currencies, chiefly the US dollar. Under the RBZ’s roadmap, all local transactions will be conducted exclusively in ZiG by the end of the decade.
“This is not a re-denomination exercise,” the central bank said, clarifying that both ZiG and foreign currency accounts will remain available. However, foreign currency balances will need to be converted into ZiG for domestic use, while banks will continue to process foreign payments for legitimate purposes, including imports, medical costs, and travel.
The transition is tied to three main policy targets: foreign reserves sufficient to cover three to six months of imports; inflation capped at 30% by the end of 2025, with a trajectory towards single digits thereafter; and a stable exchange rate, with the gap between official and parallel market rates kept below 30%.
The RBZ emphasised that the shift will be gradual, supported by policies aimed at expanding the use of ZiG while ensuring stability and foreign currency availability.
“With stability holding and expanded use of ZiG, individuals, businesses, and economic agents will progressively start to use and accept ZiG indifferently as we move towards 2030,” the bank said.
Economists remain cautious, noting that Zimbabwe’s history of currency volatility has eroded public trust. The ZiG, introduced in April 2024, was intended to restore stability after repeated bouts of inflation and currency collapse.
Despite scepticism, the central bank expressed confidence that its strategy will eventually build confidence. “This organic market-driven process supported by relevant policy interventions is expected to gradually usher Zimbabweans into the mono-currency regime,” it said.
