Online Reporter
Rutendo Nyeve in Victoria Falls
ZIMBABWE has made significant progress in meeting the critical conditions required to transition to a stable mono-currency system, with the ZiG demonstrating remarkable stability in key economic indicators, Reserve Bank of Zimbabwe (RBZ) Acting Governor, Dr Jesiman Chipika, has said.
Speaking on the roadmap to mono-currency at the 11th edition of the CEO Africa Roundtable Annual Conference in Victoria Falls yesterday, Dr Chipika cited optimal money supply management, robust foreign currency reserves and a steadily strengthening banking sector as key pillars supporting the journey.
Dr Chipika reiterated the importance of having a sovereign currency in fostering sustainable economic transformation.
“One current thing that you probably know, a nation’s currency is a symbol of nationhood and sovereignty,” she said.
“From an economic point of view, a mono-currency enhances the country’s growth potential, it allows us autonomous fiscal monetary exchange rate policies so that we are not being determined from other countries whose currencies we will be using,” said Dr Chipika.
She highlighted the pitfalls of using a strong foreign currency like the US dollar as it erodes competitiveness of a country and often leads to production of expensive goods.
“And then we lose all the export markets. We want to move away from that,” said Dr Chipika.
Drawing from global experiences, Dr Chipika said the essential preconditions for a successful transition, include durable macro-economic stability, adequate foreign currency reserves, stable exchange rates, banking sector stability and increased use of the local currency.
Detailing Zimbabwe’s progress, the Acting Governor revealed that the RBZ has successfully tamed money supply growth.
“Monthly growth in the ZiG component of money supply has been stabilised from peak levels of over 100 percent growth before the introduction of the ZiG to now an average of just 2,3 percent every month,” she said, attributing this to a tight monetary policy stance.
Perhaps the most compelling evidence of progress lies in the nation’s bulging foreign currency reserves.
“We have sustained the accumulation of foreign currency reserves, we moved from $276 million in April last year when we introduced the ZiG. Now we are, as at the end of September, at $900 million,” she said.
She added that the central bank is targeting to hit $1 billion by year-end. Dr Chipika further illustrated the cover these reserves provide.
“These reserves are four times the cover to our ZiG reserves. We cover all the money, which we are calling ZiG in the country,” she said.
Overall, import cover has surged to 1,2 months, up from a mere 0,4 months in April 2024, providing the RBZ with enough leverage to intervene in the FX market to smooth emerging volatile market conditions.
On inflation, the Acting Governor reported that month-on-month ZiG inflation has averaged a stable 0,5 percent.
While annual inflation remains high due to base effects from late 2024, it is on a firm downward trajectory.
“We are looking at the annual inflation, hoping that by the end of the year, we will be at double digit, around 20 percent. We enter 2026, we should be single digit,” she projected.
The stability has directly impacted the exchange rate. Dr Chipika noted that the official exchange rate has remained stable at around ZiG 26,66 per US dollar, while the parallel market premium has drastically declined.
“The parallel market also, which is really the totally free market, has been stabilised because of the stability in the country. And there are no more excessive speculation,” she said.
Meanwhile, foreign currency receipts have soared to US$10,35 billion in the first eight months of 2025, a 21,9 percent increase from the same period in 2024, driven by strong export performance and diaspora remittances. Crucially, the usage of the ZiG is growing organically.
“ZiG usage has increased from 26 percent in April 2024 to around 40 percent now in our national payment system,” said Dr Chipika, adding that ZiG now constitutes 46 percent of total bank deposits.
The banking sector, the backbone of the transition, was described as safe, sound and adequately capitalised, with non-performing loans at a low 2,9 percent and a high 72 percent of loans directed to productive sectors.
Financial inclusion has also risen to 84 percent, supported by initiatives like the Movable Assets Collateral Registry. Dr Chipika emphasised a patient, market-led approach to a mono currency.
“The transition to a mono-currency, as far as we are at the central bank, will be gradual and market-led. We don’t want a mono-currency regime, which is legislated. We have been there before and it didn’t work. So, let’s allow this gradual transition,” she said.
Dr Chipika concluded that the migration will only happen once conditions are sustainably met, including adequate import cover, low and stable inflation, strong local currency demand and fiscal prudence.
She reaffirmed that for now, the nation is building a compelling case, brick by brick, for a sovereign currency that symbolises both its economic independence and its national pride.
