At the recent Zimbabwe Economic Development Conference (ZEDCON), renouned Economist, Dr. Cornelius Dube presented an optimistic and pragmatic roadmap for Zimbabwe’s dedollarisation, emphasizing that success hinges on restoring confidence in the Zimbabwean dollar (ZIG).
He acknowledged past challenges caused by low local currency demand but stressed that with the right policies, dedollarisation is achievable.
Dr. Dube called for a “unified medium of exchange” where the Reserve Bank of Zimbabwe (RBZ) facilitates smooth transactions in both domestic trade and imports, while minimizing distortions from parallel market premiums.
He stressed the importance of deposit protection and forex convertibility to build trust among citizens and investors.
Warning against forced conversion, Dr. Dube advised fiscal prudence, noting, “The government must not overspend, even when tax revenues are strong.”
A key part of his strategy involves “sucking out USD from the economy by raising demand for the Zimbabwean dollar.” He pointed out that “the RBZ should be the seller of ZIG,” ensuring sufficient liquidity in the local currency.
Furthermore, Dr. Dube emphasized strengthening Zimbabwe’s foreign currency reserves and expanding the taxpayer base paying in ZIG to foster broader adoption of the local currency.
He championed a market-driven dedollarisation built on coherent policy and sustainable demand growth.
