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Zimbabwe's time for dollar debate is over
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Zimbabweans should focus more on their gold-backed currency that's set to become the sole legal tender by 2030 and less on how to phase out dollar use, according to the central bank's deputy governor.
"We should talk about mono-currency, the time to talk about de-dollarization is over," Innocent Matshe said at an annual finance ministry conference Wednesday held in Bulawayo, the nation's second largest city. "We should think about our own currency, not on how to get rid of another currency."
The comments underscore the authorities' resolve to adopt the ZiG - short for Zimbabwe Gold - as the sole currency, replacing the US dollar, which has been used for transactions since 2009.
The central bank earlier this month outlined steps needed before the local unit can be fully adopted. These included building sufficient foreign currency reserves and slashing annual inflation from 94% to single digits.
The ZiG was introduced in April 2024, marking the southern African nation's sixth effort to stand up a viable local currency after previous efforts failed amid sky-high inflation and collapsing values on foreign exchange markets.
Signs of improving sentiment toward the ZiG include a slowdown in the rate at which it is exchanged for US dollars, said Matshe, citing banking data. Currently, the ZiG accounts for about 40% of transactions in the economy.
"We should talk about mono-currency, the time to talk about de-dollarization is over," Innocent Matshe said at an annual finance ministry conference Wednesday held in Bulawayo, the nation's second largest city. "We should think about our own currency, not on how to get rid of another currency."
The comments underscore the authorities' resolve to adopt the ZiG - short for Zimbabwe Gold - as the sole currency, replacing the US dollar, which has been used for transactions since 2009.
The central bank earlier this month outlined steps needed before the local unit can be fully adopted. These included building sufficient foreign currency reserves and slashing annual inflation from 94% to single digits.
The ZiG was introduced in April 2024, marking the southern African nation's sixth effort to stand up a viable local currency after previous efforts failed amid sky-high inflation and collapsing values on foreign exchange markets.
Signs of improving sentiment toward the ZiG include a slowdown in the rate at which it is exchanged for US dollars, said Matshe, citing banking data. Currently, the ZiG accounts for about 40% of transactions in the economy.
Source - Bloomberg
