Online Reporter
Rutendo Nyeve, [email protected]
ZIMBABWE’s journey towards a mono-currency economy has reached a historic turning point, with annual ZiG inflation hitting single digits for the first time in over three decades, Reserve Bank Deputy Governor Dr Innocent Matshe has revealed.
Addressing the 2026 Zimbabwe Accountants Conference in Victoria Falls on Thursday, Dr Matshe said annual inflation had fallen to 4.1 percent in January, 3.8 percent in February and 4.4 percent in March this year, a feat last seen more than 30 years ago.
“This is a first in over 30 years!” Dr Matshe declared.
He said the sharp decline in annual inflation has resulted in positive real interest rates in the economy.
“This is important for preservation of value, promotion of investment and stability in the financial sector,” he said.
Dr Matshe expressed confidence that the Conditions Precedent (CPs) for transitioning to a mono-currency would be achieved during the National Development Strategy II (NDS2) period running from 2026 to 2030.
“The roadmap to a mono-currency is anticipated to culminate in the exclusive use of ZiG for settling domestic transactions,” Dr Matshe said.
He emphasised that the transition is not date-based but is dependent on the achievement of Conditions Precedent.
Dr Matshe said significant progress has already been made since 2024 towards meeting these critical CPs.
On the exchange rate front, Dr Matshe reported remarkable stability, with the ZiG trading in a range of 25-27 per US dollar since August 2024.
This stability has been supported by sustained foreign currency inflows and strategic market interventions by the Reserve Bank.
“The build-up of reserves has also enabled the Reserve Bank to strategically intervene in the foreign exchange market to the tune of US$1.34 billion since April 2024,” he said.
The parallel market premium has fallen to below 20 percent.
Foreign currency reserves stood at US$1.2 billion as at December 2025, sufficient to cover about six times the stock of ZiG reserve money and roughly double the ZiG deposits in the banking system.
The country is expected to record a strong current account surplus of over US$2.1 billion in 2026, a substantial leap from US$501 million the previous year, buoyed by strong gold and platinum prices.
Dr Matshe assured businesses that financial assets and contracts denominated in foreign currency would be safeguarded after the transition.
“This will entail preserving the existing foreign currency accounts, foreign currency-denominated pension funds, and USD denominated financial assets, including those on the Victoria Falls Stock Exchange and Treasury Bills,” he said.
Under a mono-currency system, domestic products and services will be exclusively paid for in local currency, while foreign currency will be reserved for external payments.
The Deputy Governor urged accountants and auditors to prepare for the transition, noting they would be crucial in translating the economic change into transparent financial reporting.
He advised businesses to review contracts and systems, strengthen governance, and engage with bankers and auditors.
“Together we can make this transition orderly, predictable and smooth,” Dr Matshe said.
