Published: 1 hour ago

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu says current market stability - marked by low inflation, a firm exchange rate, rising foreign reserves, and a sound banking sector - has created ideal conditions for Zimbabwe's gradual shift towards exclusive use of the Zimbabwe Gold (ZiG) currency within the next five years.

Dr Mushayavanhu told The Sunday Mail that the country is following a carefully phased road map targeting full mono-currency status by 2030, a move expected to restore monetary sovereignty and strengthen the domestic economy.

"Zimbabwe introduced a new currency in April 2024 and is currently in its adjustment phase on the road to full mono-currency by 2030," said Dr Mushayavanhu. "The transition requires a cautious and gradual approach supported by appropriate monetary and fiscal policies to create the right fundamentals."

According to the central bank, the transition is supported by stable inflation, averaging 0.5% per month in 2025, a stable exchange rate within regional convergence targets, and growing foreign reserves — up from 0.4 months to 1.2 months of import cover by September 2025.

Gross foreign reserves now exceed US$900 million, buoyed by record tobacco, gold, and mineral exports. The RBZ aims to build reserves to three to six months of import cover in the medium term to anchor ZiG stability.

The banking sector also remains strong, with non-performing loans at 2.9%, well below the global 5% benchmark.

To boost confidence in ZiG, Dr Mushayavanhu said the RBZ is enhancing transparency, improving liquidity management, and expanding use of the local currency in Government transactions.

"Confidence-building is a gradual process," he noted. "We are focusing on consistent policy communication and reducing transaction costs to make the local currency more attractive."

The latest ZiG Perception and Confidence Survey II shows encouraging results, with public acceptance rising from 40% in June 2024 to over 90% by September 2025. ZiG transactions on the National Payment System have similarly increased from 26% in April 2024 to 43% in May 2025.

Dr Mushayavanhu emphasised that the RBZ will continue monitoring the economy closely to preserve stability and safeguard the ongoing transition toward full use of the local currency.
- Sunday Mail

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