Zimbabwe is preparing to abandon its current multi-currency setup and adopt the Zimbabwe Gold (ZiG) as the sole legal tender for all domestic transactions.
The Reserve Bank of Zimbabwe (RBZ) has revealed that the country plans to phase out the multi-currency system by 2030, declaring that the ZiG currency will serve as the only legal tender for domestic transactions.
From Multi-Currency to ZiG-Only
Right now, Zimbabweans can transact in both ZiG and foreign currencies, mainly the US dollar and South African Rand. However, the central bank says this arrangement is temporary.
The RBZ aims to build enough stability and confidence in ZiG so that, by 2030, it will serve as the sole currency for local trade.
In a statement, the RBZ stressed that this is not a re-denomination exercise. Citizens and businesses will still be able to hold both ZiG and foreign currency accounts.
However, foreign money will need to be converted into ZiG for use in day-to-day transactions inside the country.
“With stability holding and expanded use of ZiG, individuals, businesses, and economic agents will progressively start to use and accept ZiG indifferently as we move towards 2030,” the bank said.
Gradual Transition
According to the RBZ, the transition will not happen overnight. Instead, it will be market-driven and supported by policies to increase demand for ZiG and maintain price stability. Key milestones include:
- Building up foreign reserves to cover 3–6 months of imports.
- Reducing annual inflation into single digits by 2026.
- Narrowing the gap between official and parallel market exchange rates.
The bank believes that as confidence grows and more businesses accept ZiG, the currency will gradually become the natural choice for Zimbabweans.
IMF Weighs In
The International Monetary Fund (IMF) has acknowledged the government’s 2030 target, noting that it could work if supported by credible policies and strong economic management. However, the IMF cautioned that challenges like low reserves and lingering mistrust in local money need to be addressed for the plan to succeed.
Can Zimbabwe finally break free from dollar dependence?
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