Zimbabwe’s Finance Minister Lays Out Path For Sole ZiG Currency
Finance Minister Mthuli Ncube has declared that Zimbabwe’s transition to using the ZiG as its only domestic currency will be a careful, step-by-step process. He stated the move will only happen after the government has successfully met a strict list of economic conditions. This announcement was made in the 2025 National Budget presentation, outlining the future of the country’s monetary system and aiming to reassure both citizens and investors.
The minister provided a clear picture of what a mono-currency system would look like for ordinary citizens and businesses. He moved to reassure the public about their foreign currency holdings, a major concern in a nation with a history of monetary instability.
“The transition to mono-currency entails the exclusive use of the local currency, ZiG, in the payments and settlement of domestic goods and services, with foreign currency primarily reserved for external payments,” Ncube stated.
He was quick to add that the government is not planning to remove hard currency accounts, seeking to prevent panic.
“Government assures the public that all the prior contractual obligations including bank loans and advances made prior to the final date will be preserved and honoured. Economic agents will not lose money or value due to the transition to mono-currency,” Ncube said.
The Conditions For Change To ZiG Monocurrency
Minister Ncube detailed a specific set of “Conditions Precedent” that must be met before the ZiG can stand alone. These conditions are designed to ensure the new currency is introduced on a stable and sustainable foundation. The list is comprehensive and points to a long road ahead for the southern African nation.
The necessary prerequisites, as outlined in the budget statement, include:
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Durable macroeconomic stability, characterised by low and stable inflation at single-digit levels.
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Adequate foreign currency reserves of at least three to six months of import cover in the medium to long-term.
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An efficient foreign exchange management system that eliminates market segmentation and promotes ease of access to foreign currency.
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A stable exchange rate with minimum over or undervaluation of the ZiG.
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Increased demand for the local currency through the recalibration of government taxes and broadening payments for public sector goods and services in ZiG.
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Overall financial sector stability.
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An efficient and secure National Payments System to promote ease of payment in ZiG.
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Fiscal and monetary policy cohesion with low and sustainable deficits.
“The transition to mono-currency will be a gradual and market-led process anchored on macroeconomic stability and will only happen when Government has successfully met the necessary Conditions Precedent (CPs) for mono-currency,” Ncube emphasised in his budget statement.
A Gradual Process Assured
The government claims significant progress has been made since the ZiG’s introduction in April 2024. The focus remains on building market confidence in the domestic currency. The minister’s statements suggest there is no immediate switch planned, with the timeline entirely dependent on meeting these tough economic benchmarks. The commitment to a measured approach is intended to prevent the kind of economic turmoil that has accompanied previous currency changes in the nation.
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The post Mthuli Ncube Reveals Full Conditions For Zimbabwe To Ditch USD For ZiG Sole Currency appeared first on iHarare News.
