Online Reporter
Rutendo Nyeve , Victoria Falls Reporter
THE Government has moved to allay widespread public and corporate anxiety, explicitly assuring the nation that the planned transition to a mono-currency system will not erode the value of foreign currency-denominated savings, pensions and investments held by individuals and companies.
This critical assurance is enshrined in the National Development Strategy 2 (2026-2030), the country’s blueprint for the next five years, which provides the most detailed roadmap yet for the sensitive shift from the current multi-currency regime.
The clarification comes amid growing fears within the market that the introduction and eventual dominance of the new Zimbabwe Gold (ZiG) currency could lead to a forced conversion or devaluation of US dollar assets, undermining hard-earned savings and corporate capital.
In a dedicated section titled “Protection of Financial Assets”, the Government, through the NDS2 document, has assured the nation.
“The transition from a multi-currency environment, in which many financial assets are denominated and predominantly held in US dollars, including the savings of corporates and individuals, will ensure that such assets will continue to be protected and maintained in foreign currency.”
The strategy further clarifies that the move does not entail abolishing foreign currency accounts, pension fund holdings denominated in foreign currency, or US dollar-based stocks, shares and bonds, such as those listed on the Victoria Falls Stock Exchange (VFex).
To build confidence, the Government has pledged to honour all prior contracts.
“Government assures all stakeholders that all prior contractual obligations, including bank loans and advances made before the final date, will be preserved and honoured. Economic agents will not lose money or value due to the transition to a mono-currency,” reads the policy document.
Crucially, the Government has emphasised that the transition will be neither abrupt nor administratively imposed. Instead, it will be a gradual, market-led process anchored on macroeconomic stability and will only proceed once strict preconditions are sustainably met.
These conditions, outlined in NDS2, include achieving durable single-digit inflation, building adequate foreign currency reserves, ensuring exchange rate stability for the ZiG, and fostering financial sector resilience.
The Government reports significant progress on these fronts since the ZiG’s launch in April 2024 and vows to remain steadfast in fulfilling all prerequisites to build market confidence.
“The transition to a mono-currency will be a gradual and market-led process and will only happen when Government has successfully met the necessary criteria for a sustainable mono-currency system,” the document states.
The ultimate goal, set for 2030 under NDS2, is a system where the ZiG is used exclusively for domestic transactions, while foreign currency remains accessible for external trade and, critically, preserved in the accounts and investments where it resides.
This, the Government asserts, is to provide the clarity and predictability essential for long-term business planning and economic growth.
Bongani Ndlovu