The International Monetary Fund (IMF) has urged Zimbabwe to provide a more detailed and transparent plan regarding its goal to phase out the use of the United States dollar by 2030. In its latest assessment, the IMF warned that ongoing uncertainties about the transition could jeopardize the country’s fragile economic stability.
Since the introduction of the Zimbabwe Gold (ZiG) currency in 2024, efforts to move away from dollarisation have faced significant hurdles. Despite some stabilization following last year’s sharp devaluation, the ZiG has yet to achieve broad acceptance among citizens and businesses. The US dollar remains deeply entrenched in everyday transactions, complicating the government’s plans for a full shift to a mono-currency system.
The Fund questioned key aspects of the new monetary framework, including whether the ZiG would be restricted to local transactions or if banks would continue to hold US dollar deposits. “Policy clarity is essential,” the IMF stressed, noting that lingering doubts about monetary policy are undermining efforts to restore economic stability.
Fiscal pressures also remain a major concern, as Zimbabwe grapples with a hefty $21 billion debt load. The IMF called on Zimbabwean authorities to engage proactively with international creditors to manage this burden. Strengthening monetary and exchange-rate policies is viewed as critical for building a credible foundation that can support the country’s currency transition.
The Reserve Bank of Zimbabwe has reportedly sought technical assistance from the IMF to develop a functional interbank foreign exchange system, while local banks have started limiting US dollar lending in preparation for the anticipated currency shift.
The IMF emphasized that establishing policy credibility and maintaining transparent communication with the public are vital steps to build trust in the ZiG. Without these measures, the Fund warned that the government’s plan to end reliance on the US dollar risks deepening economic uncertainty and instability in Zimbabwe’s already fragile economy.
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