RBZ Drops 2030 Deadline for Multi-Currency Exit, Sets Economic Conditions for ZiG Transition
The Reserve Bank of Zimbabwe (RBZ) has scrapped its fixed 2030 deadline for ending the multi-currency system, signalling a major policy shift as authorities move toward a conditions-based approach before adopting a monocurrency regime.
RBZ Governor John Mushayavanhu said the central bank will no longer be guided by a specific timeline but will instead focus on achieving key economic fundamentals necessary to support a full transition to the Zimbabwe Gold (ZiG) currency.
Also Read: RBZ Sets Key Milestones for Transition to Mono-Currency ZiG Use by 2030
Conditions to Guide Currency Transition
Dr Mushayavanhu outlined several benchmarks that must be met before the country can move away from the multi-currency framework. These include maintaining low and stable inflation, improving import cover to between three and five months — up from the current 1.5 months — ensuring an efficient foreign exchange market, and building strong demand for a stable ZiG.
He stressed that the transition would only take place once these fundamentals are firmly in place, signalling a cautious approach aimed at avoiding past currency instability.
US Dollar Contracts to Remain
In a move likely to reassure businesses and investors, the governor clarified that even if Zimbabwe eventually adopts the ZiG as the sole legal tender, contracts denominated in US dollars will continue to be honoured in hard currency. Foreign currency accounts will also remain unaffected.
The assurance is expected to ease concerns within the business community over potential disruptions to trade and savings.
New ZiG Banknotes on the Way
Meanwhile, the central bank is preparing to roll out new ZiG banknotes as part of broader efforts to enhance transaction efficiency and reinforce confidence in the local currency. The move forms part of ongoing currency stabilisation measures.
Crackdown on Nano Lending
The RBZ also raised concerns over what it described as unchecked nano lending by mobile network operators, warning that it could amount to large-scale money creation outside the formal banking system.
Dr Mushayavanhu announced that, with immediate effect, all nano loans must be underwritten and retained by commercial banks, tightening regulatory oversight and aiming to safeguard monetary stability.
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