Zimbabwe could eventually phase out the use of United States dollars for everyday purchases, the Reserve Bank of Zimbabwe (RBZ) has said, as authorities push towards a fully local currency system.
Deputy Governor Innocent Matshe made the remarks at the Zimbabwe Impact Investment Dialogue held on Tuesday in Bulawayo. The event was hosted by the United Nations Development Programme (UNDP) and the Zimbabwe Investment and Development Agency (ZIDA) under the theme Building Zimbabwe’s Impact Investment Ecosystem: Mobilising Private Capital Towards Achieving the Sustainable Development Goals.
Dr Matshe outlined the central bank’s long-term vision, saying the country would one day operate under a mono-currency system.
“In the last three months, Zimbabwe Gold has gained two and a half percent in value,” he said. “Those who still look forward to a green currency, I want to assure you that one day we will be in a mono-currency system. Not soon, but one day.”
He said while foreign currency accounts (FCAs) would remain, the use of US dollar banknotes for domestic transactions would eventually be discontinued.
“Users of foreign currency accounts will keep those accounts. No one is going to force anyone to change their foreign currency into local currency,” he said. “What will happen is you won’t be able to go to the supermarket and use your US dollars to procure anything.”
For many Zimbabweans who rely heavily on US dollars for daily transactions, the shift could significantly alter how they purchase goods, save money and conduct business.
Dr Matshe sought to reassure households and businesses with foreign-denominated obligations, saying registered foreign loans would continue to be honoured in the currency in which they were contracted.
“If you have contracted a foreign loan and it is registered, those obligations will be honoured in the currency of the contract, even after we transition to mono-currency,” he said.
He added that account holders would still be allowed to maintain foreign currency accounts alongside local currency accounts, but would not be permitted to use foreign banknotes for local transactions.
“In this economy, importers will access foreign currency freely from their banks. No single exporter in the last two years has failed to access foreign currency for their import needs,” he said.
The proposed shift forms part of broader efforts to strengthen confidence in the Zimbabwe Gold (ZiG) currency and reduce dependence on foreign money. Dr Matshe described the policy direction as part of a long-term strategy that “is not reversible”.
“No country can develop using another country’s currency,” he said.
Currency reforms have historically been met with scepticism in Zimbabwe, where communities have experienced inflation and loss of savings in previous transitions.
Dr Matshe acknowledged those concerns.
“We understand there will be doubting Thomases because of past experiences,” he said, adding that current reforms were aimed at building consistency and restoring trust.
He linked the currency strategy to wider economic reforms designed to mobilise domestic investment, reduce reliance on foreign capital and create a stable, predictable financial system capable of attracting long-term investors.
“The Reserve Bank is there to make sure that resources available in the economy are made accessible to import what is needed in order to produce,” he said. “I want to be clear that your investments in this economy are safe. No one is going to touch those investments.”
While confirming that Zimbabwe will ultimately move towards a single local currency for domestic transactions, Dr Matshe stressed that the transition would be gradual.
“One day we will be in a mono-currency system,” he said. “Not soon, but one day.”
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