Online Reporter
Online Reporter
THE Reserve Bank of Zimbabwe (RBZ) is reviewing transaction costs and payment infrastructure among several interventions designed to enhance the attractiveness of use of the local currency, it has been learnt.
In an interview, RBZ Governor Dr John Mushayavanhu said confidence-building naturally takes time.
“The Reserve Bank recognises that confidence-building is not an event but takes time and is being addressed through consistent policy communication, improved liquidity management and increased use of ZiG in Government transactions,” he said.
“The Reserve Bank is also reviewing transaction costs and payment infrastructure to enhance the attractiveness of local currency usage.”
To boost public confidence in the ZiG, he said, the central bank has prioritised transparency, effective communication and consistent policy implementation.
Dr Mushayavanhu also said current market conditions — which are characterised by low and stable inflation, a stable exchange rate, continued increase in foreign currency reserves and stability in the banking sector — create fertile conditions for the gradual and
phased transition to the sole use of the local currency within the next five years.
For Zimbabwe, which adopted a multi-currency system in 2009 following the collapse of the Zimbabwe dollar, the move is crucial to restoring monetary sovereignty, improving control over domestic monetary policy and ensuring that the benefits of economic
growth directly strengthen the local economy.
The country’s ongoing efforts are reportedly guided by a carefully phased road map that aims to achieve full mono-currency status — or sole use of the local currency — by 2030.
Bongani Ndlovu