RBZ adopts new roadmap for mono-currency, abandons the 2030 targe
Staff Writer
The Reserve Bank of Zimbabwe has changed its fixed 2030 timeline for the adoption of a mono-currency system to adopting a “conditions precedent” approach that prioritises sustained economic fundamentals over calendar dates.
Governor Dr John Mushayavanhu presenting the 2026 Monetary Policy Statement, clarified that the central bank is no longer focused on a specific year but on meeting a set of objective criteria that would make the ZiG the sole legal tender a natural and market-driven outcome.
“He said that from where we sit at the central bank, and also from the ministry side—I can speak on their behalf on this one—we are not talking about 2030 anymore,” the Governor stated. “We are talking about conditions precedent for us to achieve mono-currency.”
Dr Mushayavanhu outlined the critical prerequisites that must be satisfied before Zimbabwe can realistically transition to a single currency.
“And these conditions precedent are: first, we must have durable economic stability, characterised by low and stable inflation at single-digit level,” he said.
The Governor acknowledged progress on this front, with January and February both recording single-digit inflation, but cautioned against premature declarations of victory.
“So where are we now? We had single-digit in January, single-digit in February, but as I said earlier on, it’s too early to celebrate. We want to sustain that over a period of time. We can partially tick that box because we are on the road to achieving it, but I don’t think based on two points we can say we are now ready to call for mono-currency. So we are not ready.”
The second condition relates to foreign currency reserves sufficient to cushion the economy against external shocks.
“The next condition precedent is that we should have three to six months of import cover for goods and services,” Dr Mushayavanhu explained. “Currently, we are sitting on one and a half months. Are we there? Not yet. Therefore, I can’t talk of mono-currency now.”
However, the Governor expressed optimism about the trajectory of reserve accumulation.
“But at the rate at which we are building our reserves—if we did one and a half months in less than two years…” he said, suggesting that continued progress could see the target achieved sooner than previously anticipated.
On whether the mono-currency goal could be achieved earlier than 2030 if conditions are met, the Governor left the door open.
“But is it possible that if we sustain this for 2026, 2027, 2028—is it possible that we could go mono-currency in 2028? Why not?” he asked.
Crucially, Dr Mushayavanhu emphasised that the transition to a mono-currency would not be imposed by administrative fiat but would emerge organically from market behaviour.
“But as we say also, this has got to be market-driven. You’ll find that when you go into mono-currency, you won’t be told. You are the ones who will be indifferent as to whether a person pays you US dollars or ZiG—you won’t mind. But it will only happen if we achieve these conditions precedent.”
The Governor’s remarks signal a significant philosophical shift in the central bank’s approach to currency reform. By replacing a fixed deadline with objective economic criteria, the RBZ has insulated the mono-currency goal from calendar pressures while creating a clear roadmap for what must be achieved before Zimbabwe can realistically operate with a single legal tender.
The conditions-based approach also transfers focus to technical economic management, with sustained low inflation and adequate reserve cover now established as the unambiguous gateways to currency reform.
