Zimbabwe's central bank outlines long-term plan to phase out US dollar in domestic transactions
via NewsDay Zimbabwe5 min read
The Reserve Bank of Zimbabwe RBZ has announced a long-term strategy to gradually phase out the use of the U.S. dollar for domestic transactions, aiming to restore confidence in the local currency and transition to a mono-currency system. Innocent Matshe, RBZ deputy governor, stated at the Zimbabwe Impact Investment Dialogue that the goal is to anchor the economy on the Zimbabwe Gold ZiG currency. He clarified that this transition would be gradual, emphasizing, "Not soon, but one day." Matshe noted that the ZiG has gained approximately 2.5% in the past three months. While foreign currency accounts will remain, allowing for necessary foreign currency transactions, the use of U.S. dollar cash for routine domestic purchases will eventually be discontinued. There will be no forced conversion of foreign currency balances, and foreign-denominated obligations and access to foreign exchange for importers through formal banking channels will continue. Matshe acknowledged the skepticism due to past currency instability but stressed that policy consistency is crucial for rebuilding trust and improving investor confidence. He asserted, "No country can develop using another country’s currency."
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
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