By Sharon Tawuya
Bulawayo, (New Ziana) – Reserve Bank of Zimbabwe Deputy Governor, Innocent Matshe on Wednesday said the government will not rush to adopt a mono-currency system, insisting the transition to exclusive use of the Zimbabwe Gold (ZiG) will be conditions-based, not date-based.
Addressing the 2027 pre-Budget Seminar in Bulawayo, Matshe said changing the country’s currency system prematurely would be futile.
Zimbabwe uses a multiple currency system dominated by the local ZIG currency and the US Dollar.
Matshe said change to a mono currency system will be based on eight conditions, including low and stable single-digit inflation, adequate reserves of three to six months import cover, an efficient foreign exchange management system, stable exchange rate dynamics, increased demand for ZiG, financial sector stability, an efficient national payment system, as well as fiscal and monetary policy cohesion
“If these conditions are not fulfilled, it would be futile for us to move to mono-currency. So we are not, as a Reserve Bank, going to encourage any movement…into mono-currency if these conditions do not work,” he said.
On inflation, Matshe said the ZiG, introduced on April 5, 2024 as a structured currency backed by gold and foreign reserves, has delivered stability, with annual inflation easing to 2.9 percent in August 2026 from 93.8 percent a year earlier, before edging to 3.7 percent in September, while the exchange rate has held in a narrow ZiG25-27 to the United States dollar band.
On the RBZ’s weighted scorecard, progress towards mono-currency was at 54.9 percent in September 2026, up from 50.1 percent, with 6 of 8 tests met, supported by foreign reserves rising to US$1.9 billion.
On availability and promotion, Dr Matshe said the central bank has ensured ZiG is available countrywide, with upgraded Big Five banknotes introduced in April 2026 and ZiG703 million pumped into the economy to boost use.
“I can assure you, in the areas you have talked about, the Reserve Bank has been there. There is no bank or subsidiary that did not receive local currency. It is important that ZiG be available across the whole country,” he said.
He however acknowledged slower uptake in border towns like Beitbridge and Plumtree due to long-standing use of foreign currencies in cross-border trade, compared to inland areas like Gokwe where cotton farmers receiving ZiG as part of export retention have helped circulation.
On current usage, Dr Matshe said local-currency transactions on RTGS exceeded 40 percent in May and June, while the local-currency component of broad money rose from ZWG20.17 billion in December 2025 to ZWG27.95 billion in June 2026, with electronic ZiG used for high-value payments and cash for everyday transactions.
He urged the public to use ZiG for everyday payments, asking why someone would want to exchange their local currency into USD only to change it back when they pay for utilities or buy groceries.
“You earn in local currency. You spend it in local currency. Otherwise, if you don’t do that, you lose value,” he said, adding that no economic agent is allowed to reject ZiG under the multi-currency system.
“I can assure you, no school in this country is supposed to reject ZiG payment, none. Yes, we are in a multi-currency environment, and no economic agent is allowed to do that,” he said.
New Ziana
