RBZ reviews costs to promote ZiG use

Published: 2 hours ago

The Reserve Bank of Zimbabwe (RBZ) is reviewing transaction costs and payment infrastructure as part of broader measures aimed at boosting confidence and encouraging wider use of the Zimbabwe Gold (ZiG) currency.

In an interview, RBZ Governor Dr John Mushayavanhu said confidence in the local currency could only be restored through consistent policy implementation and time-tested reforms.

"The Reserve Bank recognises that confidence-building is not an event but takes time and is being addressed through consistent policy communication, improved liquidity management and increased use of ZiG in Government transactions," said Dr Mushayavanhu.

"The Reserve Bank is also reviewing transaction costs and payment infrastructure to enhance the attractiveness of local currency usage."

The central bank, he added, has prioritised transparency, effective communication, and consistency in policy as key pillars of its confidence-building strategy.

Dr Mushayavanhu noted that current market conditions - marked by low and stable inflation, a steady exchange rate, growth in foreign currency reserves, and banking sector stability - provide a strong foundation for a gradual shift towards exclusive use of the local currency.

"These developments create fertile conditions for the gradual and phased transition to the sole use of the local currency within the next five years," he said.

Zimbabwe, which adopted a multi-currency system in 2009 after the collapse of the Zimbabwe dollar, is working towards restoring monetary sovereignty and strengthening its domestic economic framework.

According to the RBZ, the transition to a mono-currency system - or sole use of the local currency - is guided by a carefully phased roadmap expected to reach full implementation by 2030.
- the chronicle

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