RBZ Governor John Mushayavanhu says conditions for eventually adopting the ZiG as Zimbabwe’s only currency are falling into place, but his assessment of one of the most important indicators, demand for the local currency, appears out of step with market trends.
The government has set 2030 as the date when the ZiG becomes the only currency. But RBZ now says the switch is no longer “time-bound”. Instead, it depends on “conditions precedent”, targets that must be met first.
The shift from a fixed deadline to a conditions-based approach reflects the reality that confidence, rather than a calendar date, will determine whether Zimbabwe can successfully return to a single currency. However, it also creates uncertainty, as legislation still provides for a 2030 deadline and has not been amended.
Mushayavanhu says some targets are already met. The ZiG is stable, the parallel market premium is within 20%, and inflation is low. But two boxes are still unticked.
“The two CPs that are yet to be met and are in progress are on the adequate foreign currency reserves and on the increased demand for the local currency,” he told the Sunday Mail.
On reserves, RBZ wants at least three to six months of import cover. Reserves stood at US$1,6 billion in June, just 1,6 months of cover. Gold holdings backing the ZiG have grown 200% since April 2024, to 4,5 tonnes.
“The significant build-up of foreign currency reserves is a critical success factor for restoring market confidence, entrenching macroeconomic stability and supporting the transition to mono-currency,” Mushayavanhu said.
Mushayavanhu’s take on ZiG usage, however, shows RBZ may be in denial on market trends.
ZiG demand is growing, he says, pointing to ZiG transactions rising from 26% of electronic payments in April 2024 to between 35% and 40% now, helped by rules forcing firms to pay half their quarterly taxes in ZiG.
But results from major companies tell a different story. Delta, the country’s biggest company whose operations are a key indicator of consumer trends, says 94% of its sales are now in foreign currency, up 14 percentage points in one year. Dairibord, whose products range from dairy to food and beverages, also provides a pulse of the market. The company says 96% of its sales volumes were in US dollars in 2025, up from 83% the year before. PPC Zimbabwe, the country’s biggest cement producer, held 99% of its cash in hard currencies at the end of its last financial year.
The same trend is visible in financial services. Zimbabweans also still prefer to be insured in USD to preserve value, according to the Insurance and Pensions Commission. Life insurers earned US$43.4 million in USD premiums in the first quarter of 2026, up 32% from a year earlier. USD business now accounts for 56% of total insurance revenue, up from 51%, while life reassurers earn 94% of their revenue in foreign currency.
