Business Correspondent
HARARE – The Reserve Bank of Zimbabwe (RBZ) has announced a strategic plan to transition the nation to a mono-currency system by 2030, with the Zimbabwe Gold (ZiG) becoming the sole legal tender for all domestic transactions.
Currently operating under a multi-currency system, the ZiG circulates alongside various foreign currencies. The central bank’s new roadmap outlines a gradual, confidence-building process to ensure the local currency becomes the foundation of the domestic economy.
Dr. John Mushayavanhu, the RBZ Governor, emphasised that the move is a structured transition rather than a sudden change.
“The journey, which has already started, will be supported by policy interventions that will ensure a gradual transition through widening the use of and demand for ZiG, long-term stability of ZiG, and availability of foreign currency on the market,” he said.
Key milestones for this transition include building sufficient foreign exchange reserves to cover at least three to six months of imports, reducing annual inflation to 30% by December 2025, and achieving single-digit inflation beyond 2026. The bank also aims to maintain exchange rate stability, targeting a parallel market premium of less than 30%.
The RBZ sought to reassure the public and businesses that foreign currency holdings will remain accessible for legitimate needs.
“Banks will continue to honour legitimate foreign currency needs such as imports, travel, and medical expenses during the transition,” the central bank stated. Individuals and businesses can continue to hold Foreign Currency Accounts (FCAs), though converting foreign currency into ZiG will be necessary for local transactions.
The bank expressed optimism that currency stability and growing confidence would lead to the organic, market-driven adoption of ZiG by individuals and businesses, paving the way for a successful mono-currency regime.