Zimbabwe moves to reduce reliance on U.S. dollar amid currency shift

Zimbabwe is stepping up efforts to ease its dependence on the U.S. dollar, part of a broader plan to restore confidence in its local currency and steady the economy after years of instability.

The push reflects growing concern among policymakers that dollarisation has weakened the country’s ability to manage inflation and guide economic policy. 

For more than a decade, the U.S. dollar has dominated daily transactions, shaping how businesses price goods and how consumers spend.

While it brought short-term stability, it also limited the central bank’s control over money supply and exchange rates. 

Officials now say rebuilding trust in the local currency is key to supporting growth and attracting long-term investment.

That effort is centered on a gradual shift, rather than abrupt policy changes that could unsettle markets. 

At the heart of the plan is the Zimbabwe Gold (ZiG), a currency introduced to stabilize prices and provide a more reliable store of value.

Authorities hope steady, consistent policy steps will encourage businesses and households to rely more on the local unit over time. 

Speaking at the Zimbabwe Impact Investment Dialogue, hosted by the United Nations Development Programme and the Zimbabwe Investment and Development Agency, Innocent Matshe said the shift away from the U.S. dollar would take time and careful planning.

Gradual path to a single currency 

The Reserve Bank of Zimbabwe is working toward a system anchored on the ZiG, though officials say the change will not happen soon.

Matshe told delegates the goal is long term, pointing to a roughly 2.5 percent gain in the currency in recent months as a sign of early stability. 

He said the authorities want to avoid sudden moves that could disrupt business activity, instead focusing on building confidence step by step.

For now, the U.S. dollar will continue to play a role alongside the local currency.

What changes for businesses and consumers 

Under the plan, foreign currency accounts will remain in place, allowing companies and individuals to hold and use hard currency when needed.

Over time, however, cash payments in U.S. dollars for everyday purchases, such as groceries, are expected to be phased out. 

Officials stressed there will be no forced conversion of foreign currency balances.

Loans and other obligations denominated in foreign currency will still be repaid in those currencies, while importers will continue to access foreign exchange through formal banking channels.

Restoring confidence in the ZiG 

Zimbabwe’s reliance on the U.S. dollar has been driven by long-standing concerns about currency stability.

Policymakers say reducing that reliance is necessary to regain control over monetary policy and support economic planning. 

Economists caution that success will depend on keeping the exchange rate stable, ensuring enough foreign currency for key sectors and maintaining policy consistency. Without that, efforts to rebuild trust in the ZiG could face challenges.