The Reserve Bank of Zimbabwe has assessed progress against eight conditions for moving from the current multicurrency framework to sole use of the Zimbabwe Gold currency, or ZiG. The conditions center on sustained low inflation, adequate foreign currency reserves, an effective foreign exchange market, exchange rate stability, wider voluntary use of ZiG, financial sector stability, coordination between fiscal and monetary policy, and reliable digital payment systems. Inflation has remained below 10% since January 2026 and stood at 2.9% in August, while foreign currency reserves rose from USD 285 million when ZiG was introduced in April 2024 to USD 1.7 billion in August 2026. The official exchange rate has remained near ZiG 26 per USD 1 since September 2024, and the gap with alternative market rates has narrowed from 140% before ZiG’s launch to 20%. ZiG’s share of transactions has increased from less than 20% at launch to 40%, although foreign currencies still account for most transactions. Banks remain well capitalized and liquid, with low nonperforming loans, while payment system availability exceeds 95%. The assessment also highlights the government’s cessation of central bank borrowing since 2024 and measures to expand ZiG use, including requiring certain taxes and government supplier payments to be settled in the local currency.
2026-09-08Reserve Bank of Zimbabwe
Reserve Bank of Zimbabwe assesses eight conditions for ZiG-only system as reserves reach USD 1.7 billion
The Reserve Bank of Zimbabwe assessed progress against eight conditions for eventually making ZiG the country’s sole currency. Inflation was 2.9% in August 2026, reserves reached USD 1.7 billion and the exchange rate premium narrowed to 20%. ZiG use has risen to 40% of transactions, but foreign currencies remain dominant.