Zimbabwe: We Are Not Rushing to End USD Dollar Use - RBZ Says

What the report says

Reserve Bank of Zimbabwe Deputy Governor Innocent Matshe said the country’s move toward a single-currency system will not happen quickly, and that authorities are not planning a rushed end to the use of the U.S. dollar. Speaking at the Pre-Budget Seminar in Bulawayo, he said the transition would be gradual, guided by market conditions and by eight publicly announced preconditions that central bank and Treasury officials are tracking.

Matshe sought to reassure businesses and the public that a mono-currency plan would not mean automatic or forced conversion of foreign currency balances into local money. He said existing contracts and foreign-currency accounts would remain valid and be honored if Zimbabwe eventually moves to a single currency. The remarks address concerns among firms and savers about imports, payments, deposits and the timing of any change.

According to the report, Zimbabwe’s authorities have been working toward a currency framework in which the Zimbabwe Gold (ZiG) could play a central role, while still keeping the process tied to economic stability. The country adopted a multicurrency system in 2009 after a period of hyperinflation, and foreign currencies, especially the U.S. dollar, have remained important in business transactions. The broader significance of the statement is that it signals policy caution as officials try to build confidence in the domestic monetary system.