Zimbabwe to Unveil De-Dollarisation Roadmap, As per Government Official
The Zimbabwean Cabinet has approved a de-dollarization plan to implement the Zig currency as the legal tender in the economy. The goal is to establish the Zig as the sole currency by early 2026. The central bank will enforce stricter licensing requirements, mandating that businesses have bank accounts and point-of-sale devices.
U.S. Dollar Dominates Economic Transactions
Zimbabwe's government has approved a de-dollarization strategy, with Finance Minister Mthuli Ncube expected to present the details. This announcement came from Information Minister Jenfan Muswere during a press briefing after the Cabinet's weekly meeting, though the exact date of the Finance Minister's announcement was not specified.
The move to reduce reliance on the U.S. dollar, which currently accounts for over 70% of economic transactions, was first indicated by President Emmerson Mnangagwa in 2023. The introduction of the gold-backed Zig currency in April marked a significant step in this direction.
Regarding the transition to the Zig, Muswere stated:
"A de-dollarization roadmap is now in place to operationalize the Zig currency as legal tender."
According to Bloomberg, officials have revised the deadline for making the Zig the exclusive currency from 2030 to early 2026.
To support the Zig and promote online payment methods, the Reserve Bank of Zimbabwe (RBZ) will tighten licensing requirements, ensuring businesses maintain bank accounts and point-of-sale devices. Additionally, the RBZ will deploy inspectors to address issues affecting price stability and the availability of essential goods.
Muswere also mentioned that penalties for businesses engaging in unfair trade practices, currency manipulation, or unjust price hikes have been increased from $200 to $5,000.
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