Business Reporter
HARARE – The Reserve Bank of Zimbabwe (RBZ) says current macroeconomic fundamentals — including low inflation, exchange rate stability, and rising foreign currency reserves — provide a solid foundation for a gradual transition to the sole use of the local currency within the next five years.
RBZ Governor John Mushayavanhu told The Sunday Mail that the move towards a mono-currency regime by 2030 will restore full monetary sovereignty and strengthen control over domestic economic policy.
“Zimbabwe introduced a new currency in April 2024 and is currently in its adjustment phase on the road to full mono-currency by 2030,” said Dr Mushayavanhu.
“The transition process requires a cautious and gradual approach in the implementation of appropriate monetary and fiscal policies to create the desired conditions. When the fundamentals are in place, the road to mono-currency will be market-driven.”
Stable Conditions for Transition
According to the central bank, Zimbabwe’s inflation has remained low and stable, averaging 0.5 percent per month this year, while the exchange rate has stayed within the regional convergence target of ±10 percent.
Foreign currency reserves have also increased from 0.4 months of import cover to 1.2 months by the end of last month — a sign of strengthening external buffers.
State media reports that this progress reflects improved policy coordination between the RBZ and the Treasury, following years of reforms aimed at rebuilding confidence in the monetary system.
“The obtaining stability is demonstrated by the better-than-expected inflation outlook and the narrowing gap between the parallel exchange rate and official prices,” the central bank noted.
Building Confidence in ZiG
Mushayavanhu said maintaining durable stability of the Zimbabwe Gold (ZiG) currency remains a top priority, underpinned by deliberate efforts to boost foreign reserves and public trust.
“The Reserve Bank has been deliberately accumulating foreign currency reserves to support long-term stability,” he said.
“As a result, gross foreign reserves have risen steadily to over US$900 million, representing about 1.1 months of import cover, driven by record tobacco, gold and mineral exports. The aim is to build reserves to at least three to six months of import cover in the medium term.”
Banking sector stability has also been maintained, with non-performing loans (NPLs) at just 2.9 percent, well below the international benchmark of 5 percent.
To further strengthen confidence in ZiG, the central bank has emphasised policy transparency, effective communication, and consistent monetary management.
“The Reserve Bank recognises that confidence-building is not an event but a process, and we are addressing it through improved liquidity management and increased use of ZiG in Government transactions,” Mushayavanhu said.
“The Bank is also reviewing transaction costs and payment systems to enhance the attractiveness of local currency usage.”
Public Confidence Rising
Findings from the RBZ’s ZiG Perception and Confidence Survey II show public acceptance of the new currency has surged — from 40 percent in June 2024 to over 90 percent by September 2025.
ZiG’s share of transactions on the National Payment System (NPS) also rose from 26 percent in April 2024 to a peak of 43 percent in May 2025, reflecting growing confidence and adoption.
Path Toward Full Monetary Sovereignty
For Zimbabwe, which adopted a multi-currency regime in 2009 after the collapse of the Zimbabwe dollar, returning to the exclusive use of local currency marks a pivotal step in reclaiming full control over monetary policy.
State media commentaries highlight that the RBZ’s phased approach — anchored on macroeconomic stability, foreign reserve accumulation, and fiscal discipline — ensures that the transition will be sustainable and market-driven.
“The Reserve Bank and Government will remain vigilant and proactive in responding to any emerging risks that may destabilise the economy,” the Bank said in a statement.
Economists believe that, if current trends persist, Zimbabwe could achieve full mono-currency status by 2030, unlocking new opportunities for domestic growth, investment, and financial independence.
