The Reserve Bank of Zimbabwe (RBZ) has clarified that the country’s transition to the Zimbabwe Gold (ZiG) as the sole legal tender will be guided by prevailing economic conditions rather than the 2030 deadline.
Speaking on the country’s currency reform programme, RBZ Governor, Dr John Mushayavanhu, said significant progress has already been made in stabilising the ZiG since its introduction.
“The transition to a sole ZiG currency will depend on the attainment of the necessary economic conditions and not merely on reaching the year 2030.
The objective is to ensure that when the country eventually adopts a mono-currency system, it is supported by strong economic fundamentals that inspire confidence among businesses and consumers,” said Dr Mushayavanhu.
He noted that the Central Bank has successfully achieved some of the critical conditions required for the transition, including maintaining price stability and preserving the value of the ZiG.
“ZiG stability, low inflation and a narrow parallel market premium are already in place. These are important milestones that demonstrate the effectiveness of our monetary policy framework and provide a solid foundation for broader currency reforms,” he said.
However, Dr Mushayavanhu acknowledged that more work remains to be done before Zimbabwe can fully migrate to a sole local currency system.
“Among the outstanding requirements are the accumulation of adequate foreign currency reserves and increasing demand and usage of the ZiG across all sectors of the economy,” he said
According to the RBZ, Zimbabwe’s foreign currency reserves currently stand at approximately US$1.6 billion, which is equivalent to about 1.6 months of import cover.
“Building sufficient foreign currency reserves is critical in strengthening confidence in the currency and providing an adequate buffer against external shocks. This remains one of the key areas that require continued attention,” said Dr Mushayavanhu.
The Governor also highlighted the need to expand the use of the ZiG in domestic transactions.
“While electronic transactions conducted in ZiG have increased to between 35% and 40%, the economy remains heavily dollarised,” he said.
Meanwhile, the RBZ said it will continue implementing policies aimed at strengthening confidence in the ZiG and creating the economic conditions necessary for a successful and sustainable transition to a mono-currency economy.
