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Follow on WhatsAppZimbabweβs central bank has outlined a series of economic milestones that must be met before the gold-backed ZiG currency can fully replace the US dollar as the countryβs sole legal tender by 2030.
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Read E-PaperThe government aims to transition to a mono-currency system by the end of the decade, phasing out the US dollar from domestic transactions. This marks the sixth attempt at currency reform, with the ZiGβshort for Zimbabwe Goldβintroduced in April 2024 as the latest initiative.
Key objectives include increasing foreign currency reserves to cover between three and six monthsβ worth of imports, bringing down inflation from the current 94% to single-digit levels by next year, and narrowing the gap between the official and black market exchange rates to below 30%. These targets were shared by the Reserve Bank of Zimbabwe (RBZ) in a post on its official X (formerly Twitter) account.
Currently, Zimbabweβs reserves are only sufficient to support one month of imports, according to central bank governor John Mushayavanhu, as reported by the state-owned Sunday Mail.
Under the proposed single-currency regime, both individuals and businesses will still be allowed to maintain accounts in both local and foreign currencies. However, local transactions will require the use of the ZiG, with foreign currency being converted accordingly. The central bank assured that banks would continue to support legitimate foreign currency needs such as travel, imports, and other external obligations.
Meanwhile, a major business advocacy group has urged the central bank to formalize its plans to eliminate the US dollar from the domestic economy, calling for clearer legal frameworks and policy certainty.
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