President Emmerson Mnangagwa has announced an extension of the use of the United States dollar as a legal tender in Zimbabwe until 2030.
This decision marks a continuation of the country’s re-dollarisation efforts, which had initially set the end of 2025 as the deadline for the dual currency regime.
The extension was implemented through Presidential Powers Regulations and was officially published in the Government Gazette under Statutory Instrument (SI) 218 of 2023. The SI amends the Exchange Control Act and states that provisions allowing the settlement of transactions or payment for goods and services in foreign currency, including the US dollar, will remain valid until December 31, 2030. This amendment supersedes Statutory Instrument 142 of 2019, which had designated the Zimbabwean dollar as the sole legal tender.
The reintroduction of the US dollar as a legal tender in 2020 was initially intended to mitigate the economic impact of the COVID-19 pandemic. However, despite the government’s previous stance that the Zimbabwean dollar should be the sole legal tender, recent statistics have shown that over 80% of local transactions continue to be conducted in US dollars.
The extension of the US dollar’s use as a legal tender until 2030 is likely to bring relief to businesses, which had been seeking long-term loans. Banks had been hesitant to offer loans beyond 2025, creating uncertainty in the business community. This new time-frame provides a more stable environment for businesses to plan and make financial decisions.