Online Reporter
Business Reporter
Reserve Bank Governor Dr John Mushayavanhu has moved to clarify Zimbabwe’s planned transition to a mono-currency system, insisting that the shift will be market-driven and will not involve the compulsory liquidation of foreign currency balances.
In remarks that sought to address public confusion over the policy, Governor Mushayavanhu reiterated that the return to a single currency is contingent upon meeting specific Conditions Precedent (CPs) outlined in the National Development Strategy 2 (NDS2) blueprint. He emphasised that the transition is not date-based but will occur when economic agents become indifferent as to whether they are paid in ZiG or US dollars.
The Governor stressed that at the time of the move to mono-currency, there will be no compulsory liquidation of foreign currency accounts (FCAs) or cash on hand . All existing contracts will remain denominated in the currency in which they were originally consummated.
The only operational change will be that all domestic transactions will be required to be settled in local currency. This means that consumers wishing to purchase goods such as bread with US dollars held in their accounts will need to convert those funds into ZiG at a bank or bureau de change before completing the purchase.
“But where is the confusion coming from?” Dr Mushayavanhu asked, seeking to underscore the clarity of the central bank’s position.
The RBZ has maintained that the transition to a mono-currency will be gradual and anchored on achieving durable economic stability, including single-digit inflation and adequate foreign currency reserves. The bank’s 2026-2030 Strategic Plan outlines a conditions-based framework for the transition, with significant progress already reported in meeting these critical benchmarks.
