RBZ assures stability over post post-dollarisation era

Published: 8 hours ago

The Reserve Bank of Zimbabwe (RBZ) has reassured the public that the country's banking system remains stable and secure, with no loss of value expected beyond 2030 under the post-dollarisation framework.

Speaking at the Old Mutual Zimbabwe Better Future Summit 2025, RBZ Deputy Governor Dr Innocent Matshe highlighted that the roadmap for transitioning from the current multicurrency regime to a domestic monetary system is being implemented with strong foundations to ensure business continuity.

"The post-dollarisation era began with the introduction of a gold-backed currency early last year, which has ushered in durable stability and predictability in the market," Dr Matshe said.

He emphasised that all contracts denominated in foreign currencies, such as the US dollar, will continue to be settled in those currencies, while local contracts will be settled in the local currency.

"Currently, banks have a capital adequacy ratio well above the required standards, ensuring that banks have sufficient capital to meet their obligations," Dr Matshe added, noting that the banking system is robust and adequately capitalised.

Zimbabwe has been operating under a multicurrency regime, dominated by the US dollar and Zimbabwe Gold (ZiG), which is legally provisioned to run until 2030. This framework follows the 2009 adoption of a US dollar-denominated system after hyperinflation devastated the value of the local currency.

Dr Matshe also reiterated the RBZ's commitment to facilitating payments and ensuring efficient and reliable banking operations. "The central bank is working to ensure that payment systems are efficient and reliable, allowing individuals and businesses to conduct transactions with confidence," he said.

The RBZ's assurances come as authorities continue to prepare for a smooth transition to a stable domestic monetary unit post-2030.
- The Herald

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