Zimbabwe’s central bank says the country could eventually reduce everyday use of the US dollar and move toward the ZiG currency.
Zimbabwe could eventually phase out the United States dollar for everyday domestic transactions as part of a long-term plan to restore confidence in the local currency, a senior Reserve Bank of Zimbabwe official has said. Authorities say the transition would be gradual and not immediate, with the economy expected to move over time toward greater use of the Zimbabwe Gold (ZiG) currency.
Reserve Bank of Zimbabwe deputy governor Innocent Matshe made the remarks while addressing delegates at the Zimbabwe Impact Investment Dialogue. The forum was hosted by the United Nations Development Programme (UNDP) and the Zimbabwe Investment and Development Agency (ZIDA).
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The meeting brought together policymakers, investors and development partners to discuss ways of mobilising private capital for national development. Monetary policy and long-term currency reforms were among the key issues discussed at the event.
Matshe said authorities are working toward anchoring Zimbabwe’s economy on the ZiG currency. He indicated that the goal is to build a stronger local monetary system while reducing long-term dependence on foreign currencies.
“Not soon, but one day,” Matshe said when speaking about a future mono-currency system. He added that the ZiG had appreciated by around 2.5 percent over the previous three months.
Under the proposed framework, foreign currency accounts would remain in place. Businesses and individuals would still be allowed to hold and transact in foreign currency where necessary through formal banking channels.
However, the use of US dollar cash for routine domestic purchases would eventually be phased out. Matshe said ordinary retail spending in supermarkets and shops would in future be expected to move away from foreign cash payments.
“What will happen is you won’t be able to go to the supermarket and use your U.S. dollars,” he said. He also stressed that there would be no forced conversion of foreign currency balances held in bank accounts.
The deputy governor said foreign-denominated obligations would continue to be honoured in their original currencies. This includes registered loans and other contractual commitments that require payment in foreign currency.
Importers would also continue to access foreign exchange through the formal banking system. Authorities say maintaining access to foreign currency for productive sectors remains important during any transition process.
Zimbabwe has relied heavily on the United States dollar for more than a decade. This dependence has largely reflected public concerns over the stability of previous local currencies and broader inflation risks.
Officials say reducing dollarisation and strengthening the ZiG are central to restoring monetary sovereignty. Matshe said no country can fully develop while depending on another nation’s currency for domestic transactions.
“No country can develop using another country’s currency,” he said, while acknowledging that public trust must still be rebuilt through consistent policies.
Economists say the success of any future shift away from the US dollar will depend on exchange rate stability, low inflation and predictable monetary management. Confidence in the local currency is widely viewed as the most important factor.
Analysts also say Zimbabwe will need adequate foreign currency reserves to support imports, debt obligations and strategic sectors such as fuel, medicine and manufacturing during the transition period.
The comments come as authorities continue promoting wider use of the ZiG through taxes, public payments and increasing circulation in the formal economy. Whether Zimbabwe can fully move away from the US dollar will likely depend on long-term economic discipline and sustained confidence.
