The Government has moved decisively to calm widespread public and corporate concerns over the planned transition to a mono-currency system, providing explicit assurances that foreign currency-denominated savings, pensions, and investments will not be devalued or forcibly converted. This announcement comes amid rising apprehension from businesses and individuals worried that the introduction of the Zimbabwe Gold (ZiG) as the dominant domestic currency could undermine the value of US dollar assets and other foreign currency holdings.
The assurances are enshrined in the recently launched National Development Strategy 2 (2026-2030), Zimbabwe’s strategic blueprint for the next five years. The document provides the most comprehensive outline yet of how the country intends to shift from the current multi-currency regime to a sustainable, single-currency system, while safeguarding the financial interests of citizens and investors.
In a dedicated section titled “Protection of Financial Assets,” NDS2 emphasises the Government’s commitment to preserving existing holdings. “The transition from a multi-currency environment, in which many financial assets are denominated and predominantly held in US dollars, including the savings of corporates and individuals, will ensure that such assets will continue to be protected and maintained in foreign currency,” the strategy reads.
The policy clarifies that the move does not imply the elimination of foreign currency accounts or financial instruments. Pension fund holdings denominated in foreign currency, bank deposits, and US dollar-based securities—including stocks, shares, and bonds listed on the Victoria Falls Stock Exchange (VFex)—will continue to operate as usual. This measure is intended to instil confidence among investors, retirees, and the business community that their hard-earned resources will not be compromised during the transition.
To further build market confidence, NDS2 pledges that all prior contractual obligations will be honoured. “Government assures all stakeholders that all prior contractual obligations, including bank loans and advances made before the final date, will be preserved and honoured. Economic agents will not lose money or value due to the transition to a mono-currency,” the document notes. This commitment is seen as crucial to maintaining trust between the Government, private sector, and financial institutions as the country navigates this delicate monetary shift.
Government reassures public and corporates as mono-currency transition advances under NDS2
The Government has also stressed that the transition to a mono-currency will not be abrupt or administratively imposed. Rather, it will be a gradual, market-led process anchored in macroeconomic stability and undertaken only after strict preconditions are sustainably met. According to NDS2, these conditions include:
Achieving durable single-digit inflation levels.
Building adequate foreign currency reserves.
Ensuring exchange rate stability for the ZiG.
Strengthening the resilience of the financial sector.
Since the launch of the ZiG in April 2024, authorities report that significant progress has been made in meeting these prerequisites. Efforts to stabilise inflation, strengthen reserves, and maintain exchange rate predictability are central to the Government’s strategy of ensuring a smooth and credible shift to a single currency.
“The transition to a mono-currency will be a gradual and market-led process and will only happen when Government has successfully met the necessary criteria for a sustainable mono-currency system,” NDS2 reiterates. The approach reflects lessons from other economies that have attempted similar transitions, underscoring the importance of careful planning, stakeholder consultation, and step-by-step implementation.
The ultimate objective, as outlined in NDS2, is to achieve a system by 2030 in which the ZiG serves as the exclusive medium for domestic transactions, while foreign currency remains accessible for external trade and continues to be preserved in existing accounts and investments. This dual approach is intended to balance domestic monetary sovereignty with global financial integration, ensuring that Zimbabwe remains competitive in international commerce while protecting domestic wealth.
Economic analysts suggest that the clarity and predictability offered by these measures are critical for long-term business planning and investor confidence. By committing to a gradual, rule-based transition, the Government seeks to reassure both local and international stakeholders that the move toward a mono-currency system will strengthen the domestic economy rather than undermine existing wealth.
Ultimately, NDS2 positions the ZiG not merely as a new currency but as a cornerstone of Zimbabwe’s broader economic reform agenda, aimed at fostering stability, predictability, and sustainable growth over the next decade. With these assurances in place, policymakers hope to cultivate a climate of trust that encourages investment, savings, and financial resilience among citizens and businesses alike.
Source- Herald
