The Reserve Bank of Zimbabwe (RBZ) says it is preparing for the exclusive use of the ZiG in all local transactions — including the purchase of fuel and passports — as it builds gold and foreign reserves to support the full transition to a single national currency.
‘A gradual and market-driven approach to de-dollarisation’
RBZ Governor Dr John Mushayavanhu has confirmed that Zimbabwe is now firmly on a path toward adopting the Zimbabwe Gold (ZiG) currency as the only legal tender for domestic payments. This includes critical services and goods that are currently only payable in United States dollars (USD), such as passport fees and fuel.
Speaking to The Daily News on 17 July 2025, Mushayavanhu was upbeat about the long-term plan.
“It’s a matter of time before the parallel market is completely subdued.”
He added that the RBZ is focused on building solid gold and foreign exchange reserves. These will support the currency and reduce volatility, paving the way for a smooth changeover.
“Once the reserves reach the desired thresholds,” said Mushayavanhu, “the foundation for a smooth transition towards a mono-currency economy will have been laid, where all domestic transactions would be conducted using the ZiG — including for the purchase of fuel and passports.”
Currently, fuel and passport services are mostly priced in US dollars. A passport costs around US$170 (R3,000), while fuel averages US$1.60 per litre ( R28.62). These sectors are seen as key tests of public trust in ZiG adoption.
In an earlier interview published by The Sunday Mail on 9 February 2025, Mushayavanhu laid out the RBZ’s phased strategy to remove the USD from everyday use.
“The Reserve Bank believes in a gradual and market-driven approach to de-dollarisation that will ensure the country gradually and sustainably transitions to a monocurrency regime by 2030.”
He warned that moving too quickly could lead to economic shocks:
“The gradual approach will ensure that no disruptive shocks are introduced to the economy, which may result in bank runs and reversal of the anticipated gains from de-dollarisation.”
The ZiG, launched in April 2024, is backed by both gold and foreign currency reserves. It was created to restore price and monetary stability after years of inflation and public scepticism about Zimbabwe’s currencies.
Fuel and passports to switch to ZiG payments
Although these key sectors remain priced in USD, the RBZ expects them to transition gradually. The central bank says it is seeing more transactions now being settled in ZiG, especially in retail and formal business settings.
Mushayavanhu told The Sunday Mail:
“The rising proportion of ZiG-denominated transactions in the national payment system and the proportion of ZiG deposits held by banks is a step in the right direction.”
He added:
“The Reserve Bank expects this to continue as long as the currency remains stable, with additional transactions currently exclusively in USD, such as fuel, also slowly coming on board in due course.”
Despite no official date being announced for fuel stations and passport offices to start accepting ZiG exclusively, the governor said the plan remains firmly in place.
Market observers say adoption will depend on continued confidence in the currency, consistent pricing, and stronger communication from both RBZ and the Ministry of Finance.
Confidence and consistency are key
RBZ officials believe the transition to a mono-currency system can be successful if Zimbabweans believe in the value of the ZiG. Mushayavanhu stressed the need for “notable milestones” to show progress without creating panic.
“Gradual and incremental but notable milestones should be achieved along the way,” he said.
Although more businesses have started accepting ZiG, critics say its usage is still low in the informal sector and for high-value purchases — areas where the USD continues to dominate.
The RBZ, however, says it remains committed to eliminating the parallel market and ensuring that price distortions caused by multiple exchange rates are a thing of the past.
As Zimbabwe moves closer to its 2030 deadline for full de-dollarisation under the National Development Strategy 1 (NDS1), all eyes will be on the Reserve Bank’s ability to deliver a stable and trusted local currency.
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The post Rbz Says ZiG To Replace USD For All Local Transactions As Single Currency appeared first on iHarare News.
