The communication from Transerve shows the fragility of the local currency and the wariness of business to put full trust in it.

Zimbabwe’s central bank has redoubled its efforts to transition from the multi-currency system to a mono-currency regime anchored by the Zimbabwe Gold (ZiG) by 2030.

The Reserve Bank of Zimbabwe (RBZ) argues that a sovereign currency is essential for regaining monetary policy control, stabilising inflation, and enabling long-term planning.

Yet, the path to de-dollarisation is deeply contested, with economists, international institutions, and local business leaders raising concerns over feasibility, credibility, and timing.

The Government’s Case for De-Dollarisation

RBZ Governor Dr. John Mushayavanhu recently confirmed that a “de-dollarisation road map” will be incorporated into the upcoming National Development Strategy 2 (NDS2). The roadmap, he said, will “crystallise in an orderly manner,” ensuring continuity for businesses and safeguarding foreign currency accounts and contracts.

Officials argue that while the multi-currency regime, introduced in 2009, helped tame hyperinflation, it now restricts monetary sovereignty. Deputy Governor Dr. Innocent Matshe underscored the point:

“This economy is affected by low liquidity, especially in US dollars, which we cannot control at all. De-dollarisation is the best route available to give us full control over monetary policy and drive economic growth.”

IMF’s Caution: Reform First, Mono-Currency Later

An International Monetary Fund (IMF) staff mission to Zimbabwe in June 2025 offered a sobering assessment. The IMF acknowledged improved stability since the introduction of ZiG, citing lower inflation and a narrower exchange rate gap, but stressed that structural reforms are essential before abandoning the multi-currency system.

The mission urged Zimbabwe to:

·       Avoid monetary financing of deficits,

·       Strengthen fiscal discipline to close financing gaps

·       Improve transparency in foreign exchange markets

·       Reform state-owned enterprises and the Mutapa Investment Fund

·       Clarify the operational implications of the 2030 mono-currency plan particularly regarding foreign-currency deposits.

“The authorities should provide more clarity on the operational implications of the transition plan, including clarifying that the use of a mono-currency will be limited to domestic transactions,” IMF mission chief Wojciech Maliszewski said.

Economists: Fundamentals Not Yet in Place

Local economists remain sceptical. Professor Gift Mugano argues that without “strong institutions, fiscal consolidation, export growth, and national cohesion,” a mono-currency is destined to fail. He warned that banning the US dollar would backfire:

“If Government bans the USD, it will be the biggest loser because the informal sector will not dump the USD. Policy only works in a formal economy. Where the informal sector is so huge, it cannot work.”

Mugano outlined a list of prerequisites, including six months of import cover (US$4.5 billion), single-digit inflation, a current account surplus, and credible elections, that he said remain far from being met.

Development economist Chenayi Mutambasere echoed the caution, pointing out that Zimbabwe’s reserves remain severely below international and SADC benchmarks. She stressed that without adequate reserves, the risks of exchange rate volatility, inflation, and re-dollarisation are high.

“Zimbabwe’s multi-currency system currently functions as a buffer that allows businesses and households to hedge against local currency volatility. Gold reserves alone cannot sustainably back that demand,” she said.

Critical Voices: ‘A Currency Built on Lies’

More scathing was consultant Brian Sedze, who described the de-dollarisation plan as “fundamentally flawed and based on lies.” He accused the RBZ of propping up ZiG through artificial means, including delayed payments to exporters and contractors.

“ZiG is not backed by gold. It is not even backed by anything. Its value is maintained by not paying exporters and contractors, which is predatory and unsustainable,” Sedze argued.

He warned that such practices were eroding confidence, incentivising smuggling, and punishing compliance in the formal sector.

Matters of Survival

Tafadzwa Shoko, a vendor in Warren Park, Harare said:

“They can talk about ZiG all they want, but here in the market, people only trust the US dollar. If Government says we must stop using USD, customers will just go to the black market. For us, survival is about what works, not what they announce.”

Salimu Sadiki, a tobacco farmer from Guruve, Mashonaland Central:

“We work hard to produce our crop, but payments are delayed and part of the money comes in ZiG, which we can’t use to buy inputs. If they force us into a mono-currency without fixing these problems, farmers will be discouraged. We need stability and respect for the value of our sweat.”

A History of Fragile Currencies

Zimbabwe’s currency troubles date back at least to the infamous “Black Friday” of November 14, 1997, when the Zimbabwe dollar lost nearly 75% of its value in one day. Since then, the country has cycled through multiple failed currencies and policy reversals, eroding trust in the RBZ.

As Professor Mugano put it: “We have travelled 27 years with currency crisis. This is not a walk in the park. If we are not careful, it will take us decades to have a local currency.”

The IMF’s advice remains clear that the RBZ's plan should be "complemented by measures to enhance the demand for ZiG in the domestic economy, most notably, increasing the share of Treasury’s operations (revenues and expenditures) in ZiG."