Zimbabwe To Use ZiG Only For Fuel And Passports, Says RBZ

RBZ Says ZiG Will Replace USD For All Local Transactions As Single Currency

Zimbabwe is gearing up to use the Zimbabwe Gold (ZiG) as the only currency for all domestic transactions — including purchasing fuel and paying for passports — the Reserve Bank of Zimbabwe (RBZ) has confirmed.

RBZ Governor Dr John Mushayavanhu revealed to the Daily News on 17 July 2025 that preparations were at an advanced stage and would intensify once gold and foreign reserves had reached the necessary levels.

“It is only a matter of time before the parallel market is completely subdued,” Dr Mushayavanhu told the Daily News.

“Once our reserves reach the desired thresholds, we will have laid the foundation for a mono-currency economy, where all domestic transactions will be conducted using the ZiG — even for critical services like fuel and passports.”

Currently, these transactions are mostly paid for in US dollars, with a Zimbabwean passport costing US$170 (approx. R3 000) and fuel prices often hovering around US$1.60 (approx. R28.80) per litre.

‘Gradual And Market-Driven’: 2030 Target Set

Speaking earlier to The Sunday Mail on 9 February 2025, Dr Mushayavanhu laid out the RBZ’s roadmap for de-dollarisation.

“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 said.

He stressed that the bank would avoid abrupt moves that could trigger instability or panic.

“Gradual and incremental but notable milestones should be achieved along the way,” he explained.

“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.”

On 30 March 2025, he repeated this stance during another interview, citing increasing trends in ZiG-based transactions.

“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.

The Reserve Bank expects this to continue as long as the currency remains stable,” he added.

“Additional transactions currently exclusively in USD, such as fuel, will also slowly come on board in due course.”

At that time, the central bank noted that the dual currency system — introduced as a stabilisation measure when the ZiG launched in April 2024 — was still necessary, but would be phased out in a measured fashion.

Building Trust Through Reserves

The RBZ is actively bolstering the country’s gold and forex reserves, which it views as essential for underpinning the ZiG’s long-term strength and acceptability.

Dr Mushayavanhu told the Daily News in July 2025 that the success of the currency transition depended on securing lasting economic confidence.

“Once confidence in the ZiG becomes widespread, it will naturally become the dominant currency in local trade and services,” he said.

“The foundations are being laid — this includes improving macroeconomic stability, boosting reserves, and strengthening public trust.”

Since its launch, the ZiG — backed by gold and other reserves — has aimed to restore faith in the local currency after previous iterations, like the RTGS dollar, collapsed under hyperinflation and volatility.

While the US dollar remains dominant in high-value transactions and cross-border trade, the government is slowly shifting the balance through reforms and policy announcements such as these.

What Happens Next?

According to the RBZ’s public statements between February and July 2025, Zimbabweans can expect the following developments:

A gradual increase in the number of services and goods priced in ZiG.
Fuel and passport payments — currently in USD — to be gradually shifted to ZiG.
2024 to 2030 as the strategic window for the country to fully adopt a mono-currency system.
Continued accumulation of gold and foreign reserves to support the ZiG’s value.