Source: RBZ flags long-term plan to phase out U.S. dollar in domestic transactions -Newsday Zimbabwe
Reserve Bank of Zimbabwe deputy governor Innocent MatsheBULAWAYO, Apr. 22 (NewsDay Live) – Zimbabwe could eventually phase out the U.S. dollar for everyday transactions, a senior central bank official said, outlining a long-term strategy to restore confidence in the local currency and move toward a single-currency regime.
Reserve Bank of Zimbabwe deputy governor Innocent Matshe told the Zimbabwe Impact Investment Dialogue on Tuesday that authorities aim, over time, to anchor the economy on the Zimbabwe Gold (ZiG) currency.
The forum, hosted by the United Nations Development Programme and the Zimbabwe Investment and Development Agency, brought together policymakers and investors to discuss mobilising private capital for development goals.
Matshe said the transition to a mono-currency system would be gradual. “Not soon, but one day,” he said, adding that the ZiG had gained about 2.5% in the past three months.
Under the envisaged framework, foreign currency accounts would remain, allowing businesses and individuals to hold and transact in foreign currency where necessary. However, the use of U.S. dollar cash for routine domestic purchases would ultimately be discontinued.
“What will happen is you won’t be able to go to the supermarket and use your U.S. dollars,” Matshe said, stressing there would be no forced conversion of foreign currency balances.
Foreign-denominated obligations, including registered loans, would continue to be honoured in their original currency, while importers would retain access to foreign exchange through formal banking channels.
Zimbabwe has relied heavily on the U.S. dollar for more than a decade, reflecting persistent concerns over local currency stability. Authorities say strengthening the ZiG and reducing dollarisation are central to restoring monetary sovereignty.
“No country can develop using another country’s currency,” Matshe said, acknowledging lingering scepticism rooted in past episodes of inflation and currency losses.
He said policy consistency would be key to rebuilding trust and supporting broader reforms aimed at improving investor confidence and ensuring a predictable financial environment.
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