Zimbabwe on Track to Phase Out US Dollar as ZiG Usage Grows- RBZ Governor
The Reserve Bank of Zimbabwe (RBZ) has said that plans to completely phase out the US dollar and adopt the Zimbabwe Gold (ZiG) as the sole currency by 2030 are on course as the local currency’s usage has risen.
ZiG Now Accounts for 30% of Transactions
RBZ Governor John Mushayavanhu shared this update during a special edition of ZTN’s Beyond the Dollar podcast on Friday, 28 February. He dismissed claims that the ZiG has not been widely accepted, stating that its use has grown from 20% to 30% of total transactions since its launch in April last year.
“It is not true that the ZiG has not been widely embraced,” he said.
He explained that while 70% of transactions in Zimbabwe are still conducted in US dollars, the shift toward the ZiG is evident.
“Remember, we are in a multi-currency regime, which means you can use US dollars or any other currency or the local currency — ZiG. What we have seen is that currently, 30 percent of the transactions that are being done in this country are being done in ZiG, and 70 percent are being done in US dollars,” Mushayavanhu explained.
Also read: “ZiG Only By 2030?”: Mthuli Ncube Sets Conditions for Phasing Out US Dollar in Zimbabwe
Zimbabwe on Track to Phase Out US Dollar as ZiG Usage Grows
Mushayavanhu highlighted that this marks an improvement since he took over as RBZ governor from John Mangudya.
“When I came in, the ratio was 80:20 — 20 percent of the transactions were in local currency, and 80 percent of the transactions were in foreign currency,” Mangudya disclosed.
Looking ahead, John Mushayavanhu explained that the goal is to have all transactions in Zimbabwe being done in ZiG.
“By 2030, we want the ratio to be 100 percent ZiG and zero percent foreign currency,” he said before adding, “So, as far as adoption of ZiG is concerned, I can tell you that the figures are showing that it’s increasing.”0iharare
