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Zimbabwe's shift to single currency progressing well
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The Reserve Bank of Zimbabwe (RBZ) has confirmed that preparations for the adoption of a single currency are progressing well, with key economic fundamentals increasingly aligning to support a shift from the current multi-currency system.
Zimbabwe has been operating under a multi-currency regime dominated by the United States dollar, but authorities have repeatedly signalled their intention to eventually move towards a mono-currency framework. The introduction of the Zimbabwe Gold (ZWG) currency in April 2024 is widely seen as a foundational step in that transition.
In a statement accompanying its latest quarterly economic update, the RBZ said conditions necessary for a future mono-currency regime are steadily improving.
"RBZ notes improving conditions for a future mono-currency regime, including macroeconomic stability, reserve accumulation, stable exchange rates, increased ZWG usage, payment system efficiency, and strong fiscal-monetary policy coordination," the central bank said.
The RBZ noted that outcomes recorded in 2025 point to strengthened monetary credibility, improved macro-financial stability and cautious but steady progress towards long-term currency consolidation. However, it cautioned that sustainability in 2026 will depend on continued policy discipline and further accumulation of foreign currency reserves.
The central bank credited the 2025 monetary policy framework for restoring discipline and delivering measurable gains, particularly in inflation control, exchange rate stability and confidence in the financial sector.
"As a result, the ZWG annual inflation declined to 15 percent by end-2025, well below the 30 percent target. Month-on-month inflation averaged 0,4 percent from February to December 2025, indicating price stability," the RBZ said.
It added that the interbank exchange rate remained broadly stable at around ZWG26 to the US dollar, while the parallel market premium was contained below 20 percent for most of 2025.
During the quarter under review, ZWG currency in circulation reached ZWG5,31 billion, with domestic usage increasing to account for approximately 30 to 40 percent of national payment transactions, signalling growing acceptance of the local unit.
The RBZ also highlighted progress in reserve accumulation. Foreign currency reserves rose to about US$1,2 billion, equivalent to 1,5 months of import cover, backing ZWG reserve money by nearly six times. Total foreign currency receipts reached a record US$16,2 billion in 2025, providing further support to the currency framework.
The central bank said these developments collectively strengthen the foundation for an eventual transition to a mono-currency system, provided macroeconomic stability is sustained and confidence in the ZWG continues to deepen.
Zimbabwe has been operating under a multi-currency regime dominated by the United States dollar, but authorities have repeatedly signalled their intention to eventually move towards a mono-currency framework. The introduction of the Zimbabwe Gold (ZWG) currency in April 2024 is widely seen as a foundational step in that transition.
In a statement accompanying its latest quarterly economic update, the RBZ said conditions necessary for a future mono-currency regime are steadily improving.
"RBZ notes improving conditions for a future mono-currency regime, including macroeconomic stability, reserve accumulation, stable exchange rates, increased ZWG usage, payment system efficiency, and strong fiscal-monetary policy coordination," the central bank said.
The RBZ noted that outcomes recorded in 2025 point to strengthened monetary credibility, improved macro-financial stability and cautious but steady progress towards long-term currency consolidation. However, it cautioned that sustainability in 2026 will depend on continued policy discipline and further accumulation of foreign currency reserves.
"As a result, the ZWG annual inflation declined to 15 percent by end-2025, well below the 30 percent target. Month-on-month inflation averaged 0,4 percent from February to December 2025, indicating price stability," the RBZ said.
It added that the interbank exchange rate remained broadly stable at around ZWG26 to the US dollar, while the parallel market premium was contained below 20 percent for most of 2025.
During the quarter under review, ZWG currency in circulation reached ZWG5,31 billion, with domestic usage increasing to account for approximately 30 to 40 percent of national payment transactions, signalling growing acceptance of the local unit.
The RBZ also highlighted progress in reserve accumulation. Foreign currency reserves rose to about US$1,2 billion, equivalent to 1,5 months of import cover, backing ZWG reserve money by nearly six times. Total foreign currency receipts reached a record US$16,2 billion in 2025, providing further support to the currency framework.
The central bank said these developments collectively strengthen the foundation for an eventual transition to a mono-currency system, provided macroeconomic stability is sustained and confidence in the ZWG continues to deepen.
Source - newzimbabwe
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