Zimbabwe’s Central Bank Aims to Establish ZiG as the Sole Currency

The Reserve Bank of Zimbabwe has laid out key goals that must be achieved prior to the establishment of the gold-backed ZiG as the nation’s sole currency by the end of this decade.

This southern African nation plans to phase out the use of US dollars in transactions by 2030 and shift to a unified currency system. The latest effort, named ZiG (Zimbabwe Gold), was launched in April 2024, following five unsuccessful attempts in the past.

Essential steps to reach this goal include bolstering foreign reserves to cover three to six months’ worth of imports, reducing annual inflation from 94% down to single digits by next year, and keeping the exchange rate gap between official and parallel markets below 30%, as indicated by the central bank in a post on its X account this Monday.

The state-operated Sunday Mail reported that the nation currently possesses enough reserves to cover only one month’s worth of imports, according to Governor John Mushayavanhu.

Within a single-currency system, both individuals and businesses will have the option to maintain accounts in both local and foreign currencies, but they will be required to convert foreign currencies into ZiG for domestic transactions, as stated by the central bank.

Furthermore, the country’s financial institutions will continue to fulfill legitimate foreign-currency requirements for imports, travel, and other necessary expenses. A leading business advocacy group has recently called on the central bank to formalize and legitimize its initiative to phase out the dollar.

© 2025 Bloomberg

Keep informed with Moneyweb’s comprehensive finance and business news on WhatsApp here.