Harare – Finance Minister Professor Mthuli Ncube has reiterated that Zimbabwe will gradually phase out the use of the United States dollar, aiming for a complete return to a single domestic currency by 2030. The minister insisted this is a firm government commitment, emphasizing that there is “no going back” on the de-dollarisation roadmap.
Speaking this week, Ncube said the country had entered the “final stage” of its transition to the Zimbabwe Gold (ZiG), the domestic currency introduced as part of efforts to restore monetary sovereignty. “The ZiG is the anchor for long-term stability. It will eventually replace the multi-currency regime,” Ncube stated, adding that the current dual circulation of the ZiG and US dollar is merely a temporary measure.
He highlighted that the ZiG has already provided a year of relative stability. Key reforms underpinning this stability, according to Ncube, include tighter fiscal discipline, strengthened monetary policies, and the elimination of Reserve Bank of Zimbabwe (RBZ) quasi-fiscal operations that had previously exacerbated hyperinflation.
Zimbabwe’s path to de-dollarisation is shaped by a turbulent economic past. Over the past two decades, the country has experienced repeated cycles of monetary instability. In 2003, widespread economic mismanagement, including uncontrolled money printing and intrusive command-style interventions, eroded confidence in the Zimbabwean dollar. By 2009, authorities abandoned the local currency altogether, allowing the US dollar to become the dominant legal tender.
Subsequent attempts to reclaim monetary sovereignty have had mixed results. The introduction of bond notes in 2016 and the Real Time Gross Settlement (RTGS) dollar in 2019 failed to restore confidence, with both initiatives collapsing under runaway inflation. As a result, the US dollar was once again permitted for everyday transactions, reinforcing its dominance in the economy.
Economists say these historical missteps highlight the risks of pushing a local currency without strong underlying fundamentals. Professor Gift Mugano, a leading economist, has warned that de-dollarisation requires more than political will. “Government must implement sound monetary policies, foster export growth, maintain fiscal transparency, and rebuild investor trust. Otherwise, the risk of repeating past mistakes is very real,” he said.
Zimbabwe to Phase Out US Dollar by 2030, Ncube Affirms Commitment to ZiG
Despite lingering skepticism, the government maintains that the ZiG is capable of anchoring long-term economic stability. Ncube argues that the currency has already shown promise, citing its relative stability over the past year. He attributes this to improved monetary policy coordination and a commitment to fiscal prudence.
Currently, the US dollar and ZiG circulate side by side, with the greenback still dominating daily transactions in both formal and informal markets. The Finance Minister, however, stressed that this dual currency system is only transitional. “We will not return to full dollarisation,” he declared. “The ZiG is the currency of the future, and by 2030, Zimbabwe will operate on a mono-currency system.”
Economists caution that the success of the ZiG hinges on more than just timelines and government declarations. Professor Mugano and other analysts emphasize that without structural reforms, including the expansion of productive sectors, investor-friendly policies, and transparent governance, confidence in the ZiG may remain fragile.
“People will only trust a currency that is backed by real economic activity, not by decree or political rhetoric,” Mugano noted. “De-dollarisation must be gradual, but it must also be credible. Without credibility, citizens and businesses will continue to rely on the US dollar informally, undermining the very purpose of the ZiG.”
Despite these concerns, government officials remain optimistic. The 2030 target for full adoption of the ZiG is part of a broader vision to reclaim monetary sovereignty and reduce dependence on foreign currencies, which has long constrained Zimbabwe’s fiscal and monetary flexibility.
While the government projects confidence in the ZiG, the public response has been cautious. Many Zimbabweans continue to use the US dollar for daily transactions due to lingering mistrust of local currency stability. Analysts believe that achieving full de-dollarisation will require sustained public education, consistent policy implementation, and incentives to encourage businesses and individuals to adopt the ZiG.
As Zimbabwe navigates this critical phase in its monetary policy, all eyes remain on Ncube and the government to ensure that the ZiG transition is not only timely but also credible, sustainable, and supported by the fundamentals needed for long-term stability.
For now, 2030 remains the benchmark for a full return to a mono-currency system under the ZiG, marking a decisive step in Zimbabwe’s ongoing journey to regain financial sovereignty.
Source- ZimEye
