RBZ’s De-Dollarisation Drive Gains Momentum as ZiG Usage Hits 35%
Zimbabwe’s de-dollarisation journey is gaining momentum, with 35 percent of all economic transactions now taking place in the Zimbabwe Gold (ZiG) currency. Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu confirmed the development and said the central bank was pursuing a gradual but firm path towards a monocurrency regime by 2030.
“Local currency transactions currently account for about 35 percent of all settlements in the economy,” said Dr Mushayavanhu speaking to The Sunday Mail.
“This is a significant increase from around 15 percent last year.”
De-dollarisation by 2030
Dr Mushayavanhu said the Government had adopted a carefully managed roadmap to reduce dependency on the United States dollar.
He emphasised that price and currency stability were key to ensuring public confidence in the local currency.
“The de-dollarisation road map is crucial for restoring confidence in the local currency,” he said.
“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.”
The central bank also said it is avoiding any abrupt policy changes that could trigger panic or 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,” said Dr Mushayavanhu.
He noted that experiences from other countries showed one key requirement for success:
“Sustained price stability is the single most significant precondition for successful de-dollarisation.”
Signs of stability support ZiG use
ZiG, launched in April 2024, has now marked one full year in circulation. According to the RBZ, inflation has remained low in recent months, boosting confidence in the currency.
“Month-on-month ZiG inflation, which spiked in October 2024 following the sharp exchange rate depreciation, and again in January 2025 after a shock in rental prices, has remained low on average,” said Dr Mushayavanhu.
“It moderated to 0,5 percent in February 2025 and -0,1 percent in March 2025.”
Food inflation was recorded at -0.5 percent in March, while non-food inflation was at 0.2 percent.
“Currency and price stability are the main anchors of de-dollarisation and the transition to a monocurrency regime,” said the governor.
“As such, currency stability should underlay the de-dollarisation process.”
Basic goods have maintained stable prices since October last year, thanks to the central bank’s tight monetary policy.
ZiG note rollout part of long-term plan
Dr Mushayavanhu also said the Reserve Bank was working on the design and rollout of new ZiG banknotes to support local currency use. However, he pointed out that the process takes time.
“Empirical evidence from across jurisdictions suggests that the design and rollout of new currency notes is a specialised process that can take some time, usually ranging from a minimum of six months to two years,” he explained.
Still, the RBZ is not sitting idle.
“The Reserve Bank is making concerted efforts to ensure the delivery of the new ZiG banknotes in the shortest possible time, considering all the critical steps involved in the design and rollout process.”
Looking ahead, the RBZ projects that inflation will remain contained for the rest of the year.
“The continuation of this trend is expected to result in end-2025 annual inflation being contained to below 30 percent, which is consistent with the achievement of the projected 6 percent growth in real GDP in 2025,” he said.
Dr Mushayavanhu stressed that each step forward in increasing local currency usage would build public trust.
“Gradual and incremental but notable milestones should be achieved along the way,” he said.