RBZ to enforce policy interventions on mono-currency regime
ROBIN PHIRI
The Reserve Bank of Zimbabwe (RBZ) will implement a series of deliberate policy interventions to steer the country towards a mono-currency system by 2030, with the Zimbabwe Gold (ZiG) set to become the sole legal tender for all domestic transactions.
“The journey which has already started will be supported by policy interventions that will ensure a gradual transition through widening the use and demand for ZiG, long-term stability of ZiG and availability of foreign currency on the market,” the RBZ said.
Currently operating under a multi-currency framework, Zimbabwe will follow a roadmap designed to progressively strengthen the local unit and instil confidence in the economy.
The central bank emphasised that the transition “is not intended to be a re-denomination exercise,” but a carefully sequenced process allowing individuals and businesses to maintain both ZiG and Foreign Currency Accounts, while requiring foreign currency to be converted into ZiG for local transactions.
“Banks will continue to honour legitimate foreign currency requirements such as imports, travel, or medical expenses,” the RBZ stated.
The policy agenda will target key macroeconomic benchmarks to support the transition, including growing foreign reserves to between three and six months of import cover, reducing inflation to 30% by December 2025 and to single digits by 2026, and keeping the parallel market premium below 30%.
RBZ officials argue that these measures will pave the way for economic stability, restore confidence in ZiG, and give the government greater control over monetary policy.
“By 2030, Zimbabwe will be under a mono-currency regime where all domestic transactions will be conducted only in ZiG. With stability holding and expanded use and demand for ZiG, individuals, businesses and all economic agents will progressively start to use and accept ZiG indifferently as we move towards 2030,” the RBZ said.
The central bank remains confident that a natural, market-led transition, reinforced by targeted policy reforms, will guide the economy smoothly into a single currency system.
