RBZ deputy governor Innocent Matshe says Zimbabwe may gradually move away from U.S. dollar cash for daily purchases, while keeping foreign accounts and formal FX access.
BULAWAYO — Zimbabwe’s central bank is laying out a long-term roadmap that could, eventually, reduce the use of U.S. dollar cash in everyday domestic trade, a move linked to restoring confidence in the local currency.
The plan, flagged by Reserve Bank of Zimbabwe deputy governor Innocent Matshe, centers on the Zimbabwe Gold (ZiG) as the anchor for a future “single-currency” approach.. Speaking during the Zimbabwe Impact Investment Dialogue on Tuesday, he said the shift would be gradual, with the aim of lowering dollarisation without disrupting how businesses and households manage cross-border realities.
Matshe’s message was careful about timing.. “Not soon, but one day,” he said, framing the move as part of a broader effort to rebuild monetary trust after years in which the U.S.. dollar has remained deeply embedded in day-to-day life.. The ZiG, he added, has gained about 2.5% over the past three months, which he presented as evidence that the local currency is not stagnant.
A key feature of the RBZ approach is maintaining flexibility for foreign currency needs.. Under the envisaged framework, foreign currency accounts would continue to exist, allowing businesses and individuals to hold and transact in foreign currency where necessary.. Matshe also stressed there would be no forced conversion of foreign currency balances.
The most striking part of the statement was the direction for cash usage.. The deputy governor said routine transactions would eventually move away from U.S.. dollar cash for ordinary purchases.. In simple terms, he described a scenario where someone would not be able to walk into a supermarket and pay with U.S.. dollars.
He also outlined how obligations would be treated.. Foreign-denominated responsibilities, including registered loans, would be honoured in their original currency.. For importers, access to foreign exchange would continue through formal banking channels, meaning day-to-day trading and supply chains would not be cut off overnight.
For Zimbabwe, the intent is clear: to restore monetary sovereignty and make the ZiG the default unit for domestic commerce.. The country has relied heavily on the U.S.. dollar for more than a decade, driven largely by doubts about local currency stability and the memory of earlier episodes where inflation and currency losses eroded purchasing power.
That backdrop is part of why the “confidence” language matters.. Monetary transitions don’t fail only because of mechanics like exchange rates; they often fail when people believe policy will change suddenly or when they expect value to evaporate before the next payment cycle.. By promising a gradual transition, retention of foreign currency accounts, and continued formal FX access for importers, Misryoum understands the RBZ is trying to reduce panic and prevent a sudden squeeze on livelihoods and trade.
Still, the practical challenge is timing and credibility.. If the end goal is to limit U.S.. dollar cash, the RBZ will need to ensure the ZiG remains workable for salaries, retail pricing, and savings—areas where trust is built through consistency more than statements.. In economic terms, the longer the dollar remains convenient, the harder it becomes to shift behavior, even if the central bank is advocating for a different outcome.
The RBZ also linked the policy direction to wider reforms aimed at supporting predictable financial conditions for investors.. The dialogue itself, hosted by the United Nations Development Programme and the Zimbabwe Investment and Development Agency, brought together policymakers and investors to discuss mobilising private capital for development goals, underscoring that monetary policy is being positioned as part of an investment climate discussion, not only a technical currency debate.
From a forward-looking perspective, Misryoum notes the plan’s success will likely depend on clear milestones—how and when domestic pricing, cash handling, and payment systems align with the ZiG.. If those milestones are communicated early and delivered steadily, the gradual phase-down of dollar cash could feel less like a policy gamble and more like a managed transition.. If not, the country could face renewed tension between official plans and everyday habits.