HARARE – The Reserve Bank of Zimbabwe (RBZ) has announced a bold new strategy to increase the circulation of the Zimbabwean currency, ZiG, as part of a broader effort to tackle persistent currency shortages and reduce over-reliance on the United States dollar.
The initiative, which forms a key component of the central bank’s ongoing monetary policy reforms, seeks to improve access to the local currency and promote its use in everyday transactions. The RBZ says enhancing the availability of ZiG is expected to help address pricing distortions fuelled by US dollar dominance, rebuild confidence in the financial system, and create a more stable and predictable economic environment.
Zimbabwe continues to grapple with limited circulation of ZiG in both formal and informal markets, a challenge that has led to widespread pricing confusion and undermined public trust in the local currency. Many retailers and service providers continue to default to pricing goods and services in US dollars, with exchange rates often varying sharply between official and parallel market sources.
The RBZ’s renewed commitment to improving currency distribution has been cautiously welcomed by business groups and economic analysts, who emphasise that the success of the initiative will hinge on the bank’s ability to maintain price stability and restore public confidence in the value of ZiG.
In a statement, the central bank said it will closely monitor market dynamics, inflation trends, and liquidity conditions, and stands ready to adjust its approach accordingly. It also plans to embark on a nationwide awareness campaign to educate citizens on the benefits and practical use of the ZiG.
If effectively implemented, the currency push could mark a turning point for Zimbabwe’s monetary system, laying the foundation for a more resilient and inclusive economy.
Source: Online
