The Reserve Bank of Zimbabwe has declared that the country is on a deliberate path to ditch its multi-currency system and adopt the local currency as its sole legal tender by 2030. The central bank’s Governor, Dr John Mushayavanhu, has stated that current economic conditions provide a fertile ground for this historic transition, aiming for full “mono-currency” status by 2030.
This move is seen as crucial for Zimbabwe to reclaim its monetary sovereignty, a power it lost in 2009 when the US dollar and other foreign currencies were adopted following the collapse of the local dollar. The shift promises to hand greater control over domestic monetary policy back to authorities and ensure that the fruits of economic growth directly fortify the local economy.
Zimbabwe Plans Sole Use Of Local Currency By 2030
Governor Mushayavanhu was keen to emphasise that this is not a rushed process, but a carefully calibrated strategy designed to preserve the nation’s hard-won macroeconomic stability. He outlined that the country is currently in an “adjustment phase” following the introduction of the ZiG in April 2024.
He stated,
“The transition process to mono-currency requires a cautious and gradual approach in the implementation of appropriate monetary and fiscal policies to create the desired conditions precedent.” The Governor added, “When the desired fundamentals are in place, the road to mono-currency will be market-driven.”
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This cautious optimism is backed by several key indicators. Inflation has been tamed, averaging a remarkably low 0.5 percent per month this year. Furthermore, the gap between the official and parallel market exchange rates has significantly narrowed, signalling greater currency stability. Perhaps most importantly, the nation’s foreign currency reserves have seen a dramatic surge, climbing from a paltry 0.4 months of import cover to 1.2 months by the end of last month.
Building a Fortress of Economic Stability
A cornerstone of this ambitious plan is the relentless accumulation of foreign reserves, which act as a buffer against economic shocks. The central bank has been strategically building this war chest to underpin the long-term value of the ZiG.
Dr Mushayavanhu revealed,
“As a result, gross foreign reserves have risen steadily to over US$900 million (approx. R16.8 billion), representing about 1.1 months of import cover on the back of record tobacco, gold output and other mineral exports.” He confirmed that the strategy is to build these reserves to a robust three to six months of import cover in the short to medium term, a level considered “critical to promote durable ZiG stability.”
Confidence in the banking sector itself is also holding strong, with non-performing loans recorded at just 2.9 percent, a figure that sits comfortably below the international safety benchmark of 5 percent.
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Public Confidence In The ZiG Rises
For any currency to succeed, it must be trusted by the people who use it. The RBZ has therefore prioritised transparency and consistent policy to win over the public. The efforts appear to be bearing significant fruit. The central bank’s own research points to a dramatic shift in sentiment.
The Governor announced that results from the RBZ’s latest “ZiG Perception and Confidence Survey II” show a marked rise in public acceptance of the currency from 40 percent in June 2024 to over 90 percent by September 2025. This growing trust is reflected in everyday transactions, with the share of ZiG payments on the National Payment System skyrocketing from 26 percent at its launch to a peak of 43 percent in May 2025. With monetary authorities pledging to remain vigilant against emerging risks, the journey towards a singular Zimbabwean currency seems to be gathering undeniable momentum.
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The post Zimbabwe Plans Sole Use Of Local Currency By 2030 appeared first on iHarare News.
