Zimbabwe will not move swiftly to end use of the US dollar until key economic indicators show sustained stability, a senior finance official told business leaders on Wednesday.
Speaking at a budget review meeting in Harare, Finance Secretary George Guvamatanga said the government intends to keep the current dual currency arrangement in place until the country records a stable exchange rate and stable inflation.
"We are not rushing to a single currency until we have a stable exchange rate, stable inflation," Guvamatanga said.
The government introduced the ZiG currency in April 2024. That launch represents the sixth attempt to establish a working national currency after repeated episodes of runaway price growth. At the time of its introduction, officials had outlined a longer-term plan to phase out use of the US dollar in everyday transactions by 2030 and make the ZiG the sole legal tender. The ZiG is described as bullion-backed in earlier policy statements.
Recent inflation data shows a marked reduction from very high levels recorded earlier in the decade. Annual consumer inflation eased to 3.2% last month from 4.7% in June. The rate had peaked at 786% in May 2020.
Guvamatanga also said the administration is targeting an increase in the nation's foreign currency reserves. The goal is to lift import cover to two months from the present level of 1.6 months, a move the finance secretary framed as part of efforts to underpin stability in the exchange rate.
The statements at the Harare meeting underscore a cautious approach to currency reform: authorities prefer to maintain a dual currency regime until they see sustained improvements in both price stability and exchange-rate conditions. Business leaders at the budget review were the audience for the finance secretary's remarks.
For now, the timetable for removing the US dollar from day-to-day transactions remains contingent on future economic outcomes rather than fixed to the previously discussed 2030 horizon. Officials will monitor inflation and exchange-rate developments as they consider the next steps.
Methodology note: This report is based on comments made by the finance secretary at a budget review meeting and on the most recently reported inflation and reserves figures cited by the ministry in those remarks.