The Reserve Bank of Zimbabwe (RBZ) has confirmed that the Zimbabwe Gold (ZiG) will soon become the sole legal tender for all domestic transactions, including fuel purchases and passport fees.
In an interview with the Daily News on Wednesday, RBZ Governor Dr. John Mushayavanhu said preparations for a mono-currency system were at an advanced stage and would accelerate once the country’s gold and foreign currency reserves reach targeted levels.
“It is only a matter of time before the parallel market is completely subdued,” Mushayavanhu said. “Once reserves reach the desired thresholds, all domestic transactions — including critical services like fuel and passports — will be conducted in ZiG.”
Currently, these services are predominantly priced in U.S. dollars, with fuel averaging US$1.60 per litre and passports costing approximately US$170.
The announcement follows the RBZ’s stated policy of transitioning from a dual-currency system to a ZiG-only economy by 2030. In February, Mushayavanhu told The Sunday Mail that the bank would pursue a “gradual and market-driven” de-dollarisation strategy to avoid economic shocks.
“The transition must be stable and sustainable,” he said. “We are avoiding abrupt changes that could trigger panic or bank runs.”
RBZ data from March showed an increase in ZiG-denominated transactions and deposits, which the central bank described as a “positive trend.” Mushayavanhu added that more sectors currently relying on the U.S. dollar would gradually shift to ZiG.
The ZiG, introduced in April 2024 and backed by gold and foreign reserves, was designed to restore confidence in Zimbabwe’s monetary system following the collapse of previous local currencies.
RBZ has since focused on accumulating reserves to reinforce the ZiG’s value and build public trust. “Confidence in the currency is critical,” Mushayavanhu said. “We are laying the foundation through macroeconomic reforms and improved reserve holdings.”
The RBZ has not specified when U.S. dollar payments will be completely phased out but reaffirmed that all domestic trade will eventually transition to ZiG.
Key elements of the de-dollarisation strategy include:
-
Gradual expansion of goods and services priced in ZiG
-
Conversion of fuel and passport payments to ZiG
-
Strengthening gold and foreign exchange reserves
-
Full implementation of a mono-currency system by 2030
The government has reiterated its commitment to managing the transition cautiously to avoid economic disruption.
ALSO READ : Government Moves to Regulate Private Healthcare Fees
For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606 or Email: editor@thezimbabwetimes.co.zw.
