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# Zimbabwe Mono-Currency Return Will Be Market-Led, Says RBZ Governor
- URL: https://www.africaandbeyond.org/zimbabwe-mono-currency-return-will-be-market-led-says-rbz-governor/
- Published: 2026-09-15T09:19:04.000Z
- Updated: 2026-09-15T09:19:04.000Z
- Author: Africa & Beyond News Correspondent
- Tags: Zimbabwe, RBZ, John Mushayavanhu, ZiG, Zimbabwe Currency, Mono-Currency, US Dollar, NDS2, Inflation, Foreign Currency Reserves, Zimbabwe Economy, Monetary Policy, Africa & Beyond, Harare, News, Zimbabwe, World News, Sadc

> *RBZ Governor: Zimbabwe’s Return to Mono-Currency Will Be Market-Led*

Zimbabwe’s return to a mono-currency system will not be determined by a fixed date, but by economic conditions, Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu has said.

Mushayavanhu said the transition to a single currency would be **market-led** and would only take place once Zimbabwe meets conditions set out in the country’s National Development Strategy 2 (NDS2).

“Let me reiterate that the transition to mono-currency, which has been talked about, is going to be market-led,” Mushayavanhu said.

He said the process was contingent on meeting conditions including durable macroeconomic stability, low and steady single-digit inflation and adequate foreign-currency reserves.

## Inflation condition largely met

According to the Governor, Zimbabwe has already made progress on the inflation requirement.

NDS2 identifies durable macroeconomic stability, characterised by low and stable single-digit inflation, as one of the conditions required before the country can sustainably move to a mono-currency system.

Recent figures indicate that ZiG inflation has remained in single digits, representing a significant improvement from the instability that accompanied previous currency episodes.

However, the requirement is not simply to achieve low inflation temporarily.

The emphasis is on **durability** — meaning the authorities must demonstrate that price stability can be maintained over time.

That distinction is important for businesses and households that have experienced repeated episodes of currency instability and rapidly changing prices in the past.

## Foreign reserves remain a major hurdle

One of the biggest outstanding conditions is the level of foreign-currency reserves.

NDS2 requires Zimbabwe to build reserves equivalent to between **three and six months of import cover** in the medium to long term.

Recent reporting indicates that Zimbabwe's foreign-currency reserves stood at about US$1.7 billion at the end of July, equivalent to approximately **1.7 months of import cover**.

That means the country has made progress but remains below the minimum three-month threshold identified in NDS2.

The reserve position will therefore be one of the key indicators to watch as Zimbabwe considers a future move towards using the ZiG as its sole currency.

## Zimbabwe remains heavily dollarised

The planned transition also faces a practical challenge: the US dollar remains deeply embedded in Zimbabwe's economy.

The International Monetary Fund has noted that Zimbabwe remains highly dollarised, with about two-thirds of transactions by value in the National Payment System being conducted in US dollars.

This means that moving from a multi-currency environment to a system dominated exclusively by ZiG would represent a major economic transition.

The success of such a move would depend not only on government policy but also on whether businesses, banks, workers and consumers have sufficient confidence in the local currency to use it voluntarily.

## More than just a currency decision

The NDS2 conditions extend beyond inflation and reserves.

They include an efficient foreign-exchange management system, stable exchange-rate dynamics, increased demand for ZiG, financial-sector stability, an efficient national payments system and coordination between fiscal and monetary policy.

This makes the proposed transition more than simply replacing the US dollar with ZiG.

It requires the authorities to create an economic environment in which Zimbabweans have a reason to hold, save, price and transact in the local currency.

That is likely to be one of the most difficult parts of the transition.

## The market will ultimately decide

Mushayavanhu's emphasis on a market-led transition suggests that the Reserve Bank does not want to impose a premature deadline.

That approach could help avoid repeating some of the currency-policy disruptions Zimbabwe has experienced in the past.

At the same time, the authorities will face pressure to demonstrate that the conditions being used to justify the transition are genuinely sustainable.

For Zimbabweans, the critical issue will be whether stability is reflected in everyday economic life — including prices, wages, savings, access to foreign currency and confidence in the banking system.

A currency can be formally designated as legal tender, but its long-term acceptance ultimately depends on confidence.

## What happens next?

For now, Zimbabwe remains in a multi-currency environment while the authorities work towards the conditions required for a future mono-currency system.

The Reserve Bank has previously indicated that reserve accumulation and increased demand for ZiG remain important outstanding requirements.

The latest figures suggest that Zimbabwe has made progress on some of the prerequisites but still has ground to cover, particularly on foreign-currency reserves.

The eventual test will therefore not simply be whether Zimbabwe can introduce a mono-currency system.

It will be whether the country can maintain the economic stability necessary to keep that currency trusted and functional once the transition takes place.

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