Zimbabwe Nears Sole ZiG Currency Use as RBZ Meets Six of Eight Key Conditions

By Southerton Business Times | Harare

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu says Zimbabwe is moving closer to adopting the Zimbabwe Gold (ZiG) as the exclusive currency for domestic transactions after meeting six of the eight key economic conditions required for a sustainable transition.

Speaking in an interview with The Sunday Mail, Mushayavanhu said the shift to a single-currency system would be gradual and based on macroeconomic performance rather than a fixed deadline.

"The transition to the exclusive use of ZiG for settling all domestic transactions will be a gradual process anchored on macroeconomic stability," he said.

"As such, the transition is not date-based but is dependent on the achievement of the conditions precedent."

The Reserve Bank said it developed the roadmap after studying international experiences of countries that successfully transitioned to domestic currency regimes. According to Mushayavanhu, Zimbabwe has already achieved six of the eight conditions required before the local currency can become the sole legal tender for domestic transactions.

These include:

• Sustained single-digit inflation;

• Stable exchange rate dynamics;

• An efficient foreign exchange trading system;

• Financial sector stability;

• An efficient National Payments System; and

• Fiscal and monetary policy discipline, including no central bank financing of Government budget deficits since April 2024.

The RBZ said annual ZiG inflation averaged 4.4 percent during the first half of 2026 and is expected to remain within single-digit levels over the medium term. The central bank also noted that the premium between the official and parallel exchange rates has remained below 20 percent, while work is underway with the World Bank to finalise an automated foreign currency trading platform.

Mushayavanhu said the Reserve Bank is now focusing on meeting the remaining two conditions before Zimbabwe can fully transition to exclusive ZiG usage. The outstanding requirements are:

• Building stronger public confidence and demand for ZiG by expanding its use in payments for Government goods and services; and

• Increasing foreign currency reserves to at least three months of import cover.

According to the RBZ, Zimbabwe's foreign currency reserves had reached US$1.6 billion by last month, equivalent to 1.6 months of import cover. Around 40 percent of those reserves comprise gold holdings. The central bank expects to hold more than 11 tonnes of gold in its vaults by the time the country is ready for full domestic use of ZiG.

Mushayavanhu said Zimbabwe remains on course to satisfy the remaining benchmarks, stressing that confidence in the local currency will be built through continued macroeconomic stability and prudent monetary management.

"The country is on course to meet the conditions precedent, as evidenced by sustained single-digit inflation," he said.

"Important to note is that the country has already achieved most of the conditions precedent and has made significant progress towards achieving the remaining ones."

Zimbabwe introduced the Zimbabwe Gold (ZiG) currency in April 2024 to replace the Zimbabwe dollar following years of currency instability. Authorities say the new currency is backed by gold and foreign currency reserves and forms part of broader efforts to restore confidence in the country's monetary system.

ZiG currency