Online Reporter
Rutendo Nyeve
Victoria Falls Bureau
THE Reserve Bank of Zimbabwe is intensifying efforts to make the Zimbabwe Gold more accessible and widely accepted, targeting border towns in the southern region and Matabeleland provinces as it pushes for broader use of the local currency.
The move follows growing demand for the local currency, which has largely maintained stability against the United States dollar, contributing to more predictable pricing and lower inflation.
This comes at a time when the Government is stepping up efforts to address the long-standing trust deficit surrounding the currency and financial products by strengthening policy consistency, legal certainty and engagement with the private sector.
In a recent interview in Victoria Falls, RBZ Deputy Governor Dr Innocent Matshe acknowledged that some parts of the country, particularly border communities, have yet to fully embrace the newly introduced ZiG denominations because of limited access to local currency notes and coins.
However, he insisted that the central bank has been proactive in distributing the local currency throughout the country.
“I can assure you that, in the areas you have mentioned, the Reserve Bank has been present. I can also assure you that there is no bank, subsidiary or sub-bank in those areas that did not receive local currency or cannot access local currency,” said Dr Matshe.
“If there is, then we need to look into it. It is important that ZiG is available across the entire country.”
He explained that border towns such as Beitbridge and Plumtree were always likely to be among the last areas to fully embrace the local currency because of their long history of using multiple currencies interchangeably across borders.
“These communities have always used currencies interchangeably across the border. Because the Zimbabwean currency was depreciating and unstable for a long time, it was always going to take longer than elsewhere,” he said.
Dr Matshe contrasted this with areas such as Gokwe, where ZiG is widely used because cotton farmers receive part of their export retention earnings in local currency.
He said the process of entrenching the ZiG would take time, given that the currency is less than two years old, while the US dollar is a long-established and globally recognised currency.
“The issue of value preservation can only be addressed through stability in the financial markets. Exchange-rate stability and low inflation volatility, which we are now seeing, will take time to translate into wider adoption. However, that is what will ultimately encourage the use of the local currency,” he said.
The Deputy Governor urged citizens to use ZiG for local transactions such as paying utility bills, purchasing groceries and paying school fees, warning that converting ZiG into US dollars and then back into local currency results in unnecessary losses through transaction costs.
“Why would you exchange your local currency into US dollars only to exchange it back again when paying for utilities or groceries that can be paid for in local currency?
“You earn in local currency and spend it in local currency. If you do otherwise, you lose value,” he said.
Speaking during a plenary session at the Zimbabwe Economic Development Conference (ZEDCON) 2026 in Bulawayo, Deputy Minister of Finance, Economic Development and Investment Promotion David Mnangagwa emphasised the need for policymakers to speak with one voice on currency matters in order to rebuild public and business confidence.
“Each time we discuss the trust deficit, especially on currency matters, it is important that everyone in policymaking positions speaks consistently so that it is clear we are conveying the same message,” he said.
Deputy Minister Mnangagwa said unresolved mistrust could persist across generations, making it critical for Government to continually address concerns surrounding currency management.
“What this means is that the trust gap and deficit, if not addressed, can linger for generations.
“Whatever negative perceptions remain, we must deal with them continuously. One way we have sought to do that is by ensuring that the policies governing currency management are clearly enshrined in law.”
Dr Matshe further explained that the central bank introduced two facilities to support the use of the local currency, including arrangements with miners who initially sought a lower proportion of their surrender requirements to be converted into ZiG.
The RBZ demonstrated that miners’ local currency obligations exceeded the 30 percent retention threshold, highlighting the need for more, rather than less, local currency.
Dr Matshe also issued a reminder that no school or economic agent is permitted to reject ZiG payments under the multicurrency system.
“I can assure you that no school in this country is supposed to reject ZiG payments. None.
“Yes, we are in a multicurrency environment, and no economic agent is allowed to do so,” he said.
Dr Matshe added that fuel, previously one of the major sticking points, is also gradually transitioning, with some fuel companies already accepting ZiG payments.
“An economy does not change overnight. If it does, you will encounter serious problems.
“What we are witnessing now is a transition, one that will ultimately strengthen and consolidate the economy,” he said.
He reminded the nation that the exclusive use of the US dollar in the past did not by itself drive economic growth and said the market, rather than the Reserve Bank or Government, would ultimately determine the pace of full ZiG adoption.
