Zimbabwe to Unveil Roadmap to Dedollarization
Zimbabwe’s cabinet said it has approved a roadmap to abandon US dollars in favor of its bullion-backed currency in transactions, which will be unveiled by the nation’s Finance Minister Mthuli Ncube.
“On modalities to operationalize the ZiG currency as legal tender for use in the economy, a dedollarization roadmap is now in place,” Information Minister Jenfan Muswere told reporters Tuesday at a post-cabinet briefing held in the capital, Harare.
The timeframe for its implementation will be presented by the finance minister, he said, without providing details on when Ncube will make the announcement. A Treasury spokesperson didn’t immediately respond to a text message seeking comment.
The southern African nation is trying to shake off its heavy dependence on the dollar, which has been the centerpiece of most economic activity for the past 15 years. Dollars now account for about 70% of all economic transactions in the economy, according to data provided by the central bank. At the launch of the gold-backed ZiG, short for Zimbabwe Gold, in April, dollars were used in 85% of transactions.
The nation’s President Emmerson Mnangagwa hinted at the possible adoption of the ZiG as the sole currency as early as 2026, ahead of an initial 2030 deadline – a proposal supported by bankers.
In the meanwhile authorities plan to hike penalties against persons involved in “unjust price hikes, manipulation of the ZiG currency, smuggling and all forms of unfair trade practices,” to boost its use, Muswere said.
Fines will be reviewed from a minimum $200 to a maximum $5,000 or the ZiG equivalent, he added.
