KEY POINTS
- ZiG usage climbs to 40 percent in June.
- RBZ plans full de-dollarization by 2030.
- The public still prefers the US dollar over ZiG.
Zimbabwe’s central bank says the country’s gold-backed currency, the ZiG, is gaining traction—but old habits die hard. Despite a 14-point surge in usage to 40 percent by June, the US dollar still dominates day-to-day transactions.
The Reserve Bank of Zimbabwe (RBZ) attributes the increase to tighter exchange-rate controls and a hawkish policy stance that has kept the currency relatively stable since its launch on April 5, 2024.
ZiG usage climbs as cash demand grows
Governor John Mushayavanhu said electronic ZiG transactions rose from 26 percent in April 2024 to more than 40 percent in June 2025. Demand for physical cash has also increased, prompting the RBZ to require banks to hold at least 3 percent of ZiG deposits in cash—the regional benchmark—for immediate circulation.
By the end of September, all banks are expected to distribute ZiG through ATMs and banking halls, with over ZiG200 million in vaults awaiting disbursement.
RBZ working on modernising ZiG banknotes
The central bank is redesigning and producing improved banknotes, now in the advanced stages of development. Once finalized, Mushayavanhu will inform the public about the rollout.
He stressed that boosting ZiG usage remains critical for inflation control and monetary stability, especially as Zimbabwe moves toward phasing out the multicurrency system by 2030.
De-dollarization roadmap fuels public concerns
RBZ confirmed that by 2030, the ZiG will be the sole legal tender. At the Mid-Term Monetary Policy Review consultations, stakeholders pressed for a clear de-dollarization plan, expressing concern about the fate of USD-denominated contracts and foreign-currency deposits after the transition.
Mushayavanhu said the roadmap—to be integrated into the National Development Strategy II—will preserve stability, protect forex accounts, and ensure business continuity.
