The Zimbabwe Central government has signaled that the country is about fulfilling conditions required to shift to a mono currency arrangement.
Under a multi-currency arrangement, foreign currency co-circulates with the domestic unit, ZiG.
However, the eventual transition to domestic mono-currency is expected only after the requisite conditions have been fully achieved and sustainably maintained.
According to experts, one of the key conditions, durable macroeconomic stability, has recorded significant progress, with annual ZiG inflation averaging 4,2% during the first seven months of 2026.
The central bank expects inflation to remain at low single-digit levels over the medium to long term.
Zimbabwe remains below the targeted foreign currency reserve threshold required for the transition, but has seen progress growth in the holdings over the last couple of years amid bullish external sector performance, driven by strong commodity prices.
Reserves stood at U$1,7 billion at the end of July, equivalent to 1,7 months of import cover, against a medium- to long-term requirement of at least three months and a target of up to six months.
The Reserve Bank said it is targeting between 1,8 and two months of import cover by the end of this year.
RBZ Deputy Governor Dr Innocent Matshe said the conditions precedent should not be viewed as a countdown to a predetermined shift.
“This transition is going to be market-driven and it is not something that we expect to happen overnight. I know every time you talk about mono-currency, people start thinking that we are saying that it should happen and it will happen overnight. It’s not going to happen overnight.”
