US$ dollar is going for Good: RBZ completes 6 of 8 conditions for ZiG to become Zimbabwe’s only currency

HARARE – In the corridors of the Reserve Bank of Zimbabwe (RBZ), a quiet but determined revolution is taking place. The greenback, which has dominated the Zimbabwean economy for years, is finally being served its notice. Governor John Mushayavanhu has revealed that the nation is now standing on the precipice of a historic shift: the return to a mono-currency system where the Zimbabwe Gold (ZiG) reigns supreme.

For a nation that has weathered the storms of hyperinflation, multiple currency collapses, and the persistent shadow of the black market, the Governor’s latest scorecard is nothing short of a bold declaration of intent. According to the central bank, Zimbabwe has now successfully met six of the eight critical conditions required to ditch the multi-currency regime and move to the sole use of the ZiG for all domestic transactions.

“The transition to the exclusive use of ZiG for settling all domestic transactions will be a gradual process anchored on macro-economic stability,” Mushayavanhu stated in a recent interview with The Sunday Mail. He was careful to manage expectations, noting that this is not a race against the calendar but a journey defined by economic benchmarks. “As such, the transition is not date-based but is dependent on the achievement of the conditions precedent (CPs).”

The Scorecard: Six Down, Two to Go

The road to a single currency is paved with eight stringent requirements that the RBZ, in consultation with international partners like the World Bank, has identified as essential for a sustainable transition. The progress reported this July 2026 suggests that the central bank has found its rhythm after a turbulent start.

The six conditions already in the “achieved” column include the maintenance of single-digit inflation, which has averaged 4.4 per cent in the first half of 2026. This is a significant departure from the dark days of July 2025, when annual ZiG inflation peaked at a staggering 95.8 per cent. The bank has also successfully established an efficient foreign exchange trading system and kept the parallel market premium below 20 per cent—a feat that many economists once thought impossible.

Furthermore, the financial sector remains stable, the National Payments System is functioning efficiently, and, perhaps most crucially, the central bank has ceased the practice of financing fiscal deficits. Mushayavanhu confirmed that there has been no central bank financing of the budget since April 2024, a move aimed at ending the cycle of money printing that previously devalued the local unit.

However, two major hurdles remain. The first is the need to broaden the payment for public sector goods and services in the local unit to boost demand. The second, and perhaps most daunting, is the accumulation of foreign currency reserves. The target is to have at least three to six months of import cover. Currently, Zimbabwe’s reserves sit at US$1.6 billion, which only covers about 1.6 months of imports.

A History of Turbulence and Resilience

To understand the weight of this announcement, one must look back at the chaotic birth of the ZiG. Introduced in April 2024, the gold-backed currency was met with deep-seated skepticism. The memory of the Zimbabwean dollar’s demise was still fresh, and many citizens viewed the new unit as just another experiment destined for the scrapheap.

The skepticism seemed justified in September 2024, when the RBZ was forced to devalue the ZiG by 43 per cent against the US dollar. The rate tumbled from 13.56 to over 24.4 in a single day, wiping out nearly half the value of people’s savings and salaries. At the time, the move was described by some as a “last-ditch effort” to save the currency from a total collapse.

Following that devaluation, the authorities launched a massive crackdown on the informal economy. Police and intelligence services were deployed to the streets of Harare and Bulawayo to hunt down illegal money changers who were accused of sabotaging the currency. Hundreds were arrested, and dozens of bank accounts were frozen. The “street wars” against the black market became a daily spectacle, with dealers using encrypted WhatsApp groups to evade the law.

Yet, against these odds, the ZiG has managed to find a level of stability in 2026. The introduction of upgraded banknotes in April this year, featuring enhanced security and durability, helped to settle some of the public’s anxieties. “The public must be mindful that we are not introducing a new currency, but improved and upgraded ZiG notes which meet international standards,” a central bank official noted during the launch.

The Import Cover Challenge

The most significant barrier to the mono-currency dream remains the foreign currency buffer. While the gold holdings in the RBZ vaults are growing—expected to reach 11 tonnes by the time of the full transition—the liquid cash reserves are still lagging.

“The country is on course to meet the conditions precedent, as evidenced by sustained single-digit inflation,” Mushayavanhu remarked. “Important to note is that the country has already achieved most of the CPs and has made significant progress towards achieving the remaining ones.”

However, independent economists remain cautious. Professor Gift Mugano, a frequent critic of government monetary policy, has previously argued that a mono-currency system cannot be forced through administrative decree alone. He has pointed out that without a robust manufacturing base and significant export growth, the demand for the US dollar will always remain high, regardless of how many conditions the RBZ claims to have met.

The reality for the ordinary Zimbabwean on the street is a mixture of hope and pragmatism. In the markets of Mbare, traders still keep a close eye on the US dollar rates, even as they accept ZiG for daily transactions. The convenience of the greenback is hard to shake off, especially for a population that has seen its wealth vanish overnight more than once.

The Road Ahead: 2030 or Sooner?

The government’s initial roadmap suggested that the multi-currency system would remain in place until 2030. However, the recent progress has sparked whispers that the transition could happen much sooner. By shifting from a date-based target to a conditions-based one, the RBZ has given itself the flexibility to pull the trigger as soon as the reserves are adequate.

The central bank is currently working with the World Bank to finalise an automated foreign currency trading system, which is expected to further stabilise the exchange rate. The goal is to create a transparent market where the value of the ZiG is determined by supply and demand, rather than backroom deals or speculative attacks.

As the country moves into the second half of 2026, the focus will be on the two remaining conditions. The government is expected to mandate that more taxes and duties be paid in ZiG, a move that will force businesses to hold and use the local currency. Simultaneously, the push to increase gold production and mineral exports will be critical in building the necessary import cover.

For now, the US dollar remains a legal tender, but its days as the undisputed king of the Zimbabwean economy appear to be numbered. The Governor’s message is clear: the foundation is being laid, the pillars are being strengthened, and the ZiG is preparing to stand alone.

Whether the public will fully embrace the unit without the safety net of the US dollar remains the ultimate question. Trust, as the saying goes, is earned in drops and lost in buckets. The RBZ has spent the last two years trying to refill that bucket, drop by painstaking drop. If they succeed in meeting the final two conditions, Zimbabwe may finally close the chapter on its long and painful currency saga.

“The country is on course to meet the conditions precedent,” Mushayavanhu reiterated, sounding a note of cautious optimism. For a nation that has seen it all, that optimism is perhaps the most valuable currency of all.

Table: Zimbabwe’s Progress Toward Mono-Currency (July 2026)

“The transition to the exclusive use of ZiG for settling all domestic transactions will be a gradual process anchored on macro-economic stability.” — Dr. John Mushayavanhu, RBZ Governor