Zimbabwe assures public on mono-currency transition

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu has moved to dispel concerns surrounding Zimbabwe's planned return to a mono-currency system, stressing that the transition will be gradual, market-driven and will not involve the forced conversion of foreign currency holdings.

Dr Mushayavanhu said the move to a single currency would only take place once the economy meets key Conditions Precedent (CPs) outlined under the National Development Strategy 2 (NDS2) framework.

He said the transition was not tied to a specific date but would depend on economic conditions, particularly when businesses and individuals become indifferent to whether they are paid in Zimbabwe Gold (ZiG) or United States dollars.

"The transition is not date-based. It will happen when conditions are right and when economic agents no longer have a preference between ZiG and the US dollar," the Governor said.

Addressing concerns over foreign currency accounts (FCAs), Dr Mushayavanhu clarified that there would be no compulsory liquidation of US dollar balances or foreign currency cash holdings when Zimbabwe eventually adopts a mono-currency system.

He said existing contracts would continue to be honoured in the currency in which they were originally entered into.

"The only operational change will be that domestic transactions will be settled in the local currency," he explained.

Under the proposed system, individuals who hold foreign currency but wish to make domestic purchases would be required to convert their funds into ZiG through authorised financial institutions such as banks or bureaux de change before completing transactions.

"But where is the confusion coming from?" Dr Mushayavanhu questioned, insisting that the central bank's position had remained consistent.

The RBZ has maintained that the transition requires sustained economic stability, including low inflation, adequate foreign currency reserves and increased confidence in the local currency.

The central bank's 2026–2030 Strategic Plan outlines a conditions-based approach towards mono-currency adoption, with authorities saying progress has already been made in meeting some of the required benchmarks.

The Governor said the ultimate objective is to restore confidence in the domestic currency while ensuring that the shift does not disrupt economic activity or undermine public and business confidence.