Reserve Bank of Zimbabwe moves to quell currency transition fears

The Reserve Bank of Zimbabwe has sought to calm public fears ahead of the country's transition to a mono-currency system, assuring citizens that their United States dollar balances will remain fully protected.

In an interview, RBZ Deputy Governor Innocent Matshe said the planned shift  -  to be complemented by the introduction of new Zimbabwe Gold (ZiG) banknotes on April 7, 2026  -  will not result in forced conversions or loss of value.

"No balance, not even a penny, will be exchanged for any other currency without the owner's consent," Matshe said.

He emphasised that foreign currency accounts (FCAs) will continue to operate under the new framework, with account holders retaining full control over when and how their funds are converted into local currency.

"The only time those balances will be exchanged is when and if the account holder chooses to do so," he said.

Under the proposed system, the ZiG will be used primarily for domestic transactions, while foreign currency holdings will remain intact. Matshe explained that customers will still be able to convert funds from their FCAs at the point of sale if needed, ensuring transactional flexibility.

The central bank also moved to address concerns about inflation, particularly in light of the planned rollout of new ZiG banknotes.

Matshe said the new notes are intended solely to replace existing ones and will not increase money supply.

"There will not be any excess printing of money. Liquidity in the market will be closely monitored," he said.

The assurances come as Zimbabwe records relatively stable inflation levels. According to official data, annual inflation stood at 4,4% in March, with month-on-month inflation at 0,5%.

Matshe said the RBZ expects inflation to remain in single digits throughout the year, barring major external shocks.

The move toward a mono-currency system marks a significant step in Zimbabwe's monetary policy, as authorities seek to rebuild confidence in the local currency following years of volatility.

With the April 7 deadline approaching, the RBZ says its priority is to ensure a smooth transition while safeguarding public trust and financial stability.