News / National
US$ assets will be safe under Zimbabwe's mono currency transition
35 mins ago |
79 Views
The Government has moved to allay growing public and corporate concerns, assuring that the planned transition to a mono-currency system will not compromise the value of foreign currency-denominated savings, pensions, and investments held by individuals and companies.
This assurance is detailed in the National Development Strategy 2 (NDS2) for 2026–2030, which provides a comprehensive roadmap for the country's shift from a multi-currency system to the Zimbabwe Gold (ZiG) as the primary domestic currency. The clarification comes amid fears that the new currency could lead to forced conversion or devaluation of US dollar assets, potentially eroding savings and corporate capital.
In a dedicated section titled "Protection of Financial Assets," the NDS2 underscores that holdings in foreign currency—including bank accounts, pension funds, and US dollar-denominated stocks, shares, and bonds on platforms such as the Victoria Falls Stock Exchange (VFEX)—will continue to be protected and maintained.
The strategy also commits the Government to honour all prior contracts, including loans and advances, assuring stakeholders that no economic agent will lose money or value due to the transition.
The transition will be gradual and market-led, not abrupt or administratively imposed, and will proceed only after key macroeconomic preconditions are met. These include achieving durable single-digit inflation, building adequate foreign currency reserves, ensuring exchange rate stability for the ZiG, and fostering financial sector stability. The Government reports significant progress since the ZiG's launch in April 2024 and pledges to meet all prerequisites to build market confidence.
The NDS2 sets the ultimate goal for 2030: a mono-currency system where the ZiG is used exclusively for domestic transactions, while foreign currency remains accessible for external trade and preserved in current accounts and investments. The blueprint stresses that this approach will provide clarity and predictability essential for long-term business planning and economic growth.
This assurance is detailed in the National Development Strategy 2 (NDS2) for 2026–2030, which provides a comprehensive roadmap for the country's shift from a multi-currency system to the Zimbabwe Gold (ZiG) as the primary domestic currency. The clarification comes amid fears that the new currency could lead to forced conversion or devaluation of US dollar assets, potentially eroding savings and corporate capital.
In a dedicated section titled "Protection of Financial Assets," the NDS2 underscores that holdings in foreign currency—including bank accounts, pension funds, and US dollar-denominated stocks, shares, and bonds on platforms such as the Victoria Falls Stock Exchange (VFEX)—will continue to be protected and maintained.
The strategy also commits the Government to honour all prior contracts, including loans and advances, assuring stakeholders that no economic agent will lose money or value due to the transition.
The transition will be gradual and market-led, not abrupt or administratively imposed, and will proceed only after key macroeconomic preconditions are met. These include achieving durable single-digit inflation, building adequate foreign currency reserves, ensuring exchange rate stability for the ZiG, and fostering financial sector stability. The Government reports significant progress since the ZiG's launch in April 2024 and pledges to meet all prerequisites to build market confidence.
The NDS2 sets the ultimate goal for 2030: a mono-currency system where the ZiG is used exclusively for domestic transactions, while foreign currency remains accessible for external trade and preserved in current accounts and investments. The blueprint stresses that this approach will provide clarity and predictability essential for long-term business planning and economic growth.
Source - The Chronicle
Join the discussion
Loading comments…
