By A Correspondent
President Emmerson Mnangagwa’s government is reportedly weighing a risky shift in Zimbabwe’s monetary policy—phasing out the US dollar in favor of the recently reintroduced Zimbabwe Gold (ZiG) as the country’s sole legal tender. But analysts, political activists, and economists warn the move could trigger economic collapse, fuel black market activity, and spark public outrage.
The proposal, reportedly driven by recommendations from the International Monetary Fund (IMF), suggests Zimbabwe is ready to embrace a monocurrency system. IMF mission chief Wojciech Maliszewski praised Zimbabwe’s monetary progress during a recent Article IV consultation, noting “encouraging progress” in stabilising the local currency and narrowing the gap between official and parallel market rates.
“We would like to see a deeper forex market… and ideally, an elimination of the gap between parallel and official rates,” Maliszewski said. He added the ZiG had shown “sufficient stability” for wider adoption.
However, critics on the ground are not convinced. The US dollar currently dominates over 70% of transactions in Zimbabwe, with citizens relying on its relative stability amid lingering distrust of local currency.
“This is a recipe for disaster,” warned Stephen Sarkozy Chuma, former Citizens Coalition for Change (CCC) youth assembly spokesperson. “The government is trying to force economic patriotism on a public that has no confidence in its own institutions. People trust the US dollar because it’s stable and reliable. Removing it will not restore trust in the ZiG—it will fuel black market chaos, inflation, and public resentment.”
The ZiG, introduced by the Reserve Bank of Zimbabwe earlier this year, has struggled to gain widespread public acceptance. Many workers are still paid in US dollars, and most businesses quote prices in the greenback—signs that confidence in the local currency remains fragile.
Gibson Murinye, a political activist based in Masvingo, warned that the fundamentals for a monocurrency regime are simply not in place.
“Wages are still being paid in USD because no one trusts the ZiG. Shops are quoting prices in US dollars. The moment they remove the dollar, inflation will explode overnight. People will suffer,” he said. “This is not economic reform—it’s self-sabotage.”
Despite public concerns, some economists close to the ruling party support the idea. Gladys Shumbambiri-Mutsopotsi argued that adopting a single currency could strengthen the Reserve Bank of Zimbabwe’s control over economic levers such as interest rates and inflation.
“A monocurrency will give the Reserve Bank of Zimbabwe more control over interest rates, inflation, and broader economic policy,” she said.
But for many Zimbabweans, monetary control means little without credibility. The trauma of the 2008 hyperinflation crisis—when the Zimbabwean dollar became worthless and life savings were wiped out—still casts a long shadow.
While the Mnangagwa administration has yet to officially announce the phasing out of the US dollar, signals from government insiders and financial institutions suggest momentum is building. Opposition voices, however, are calling on the president to hit pause.
“You cannot build a currency on slogans and hope,” said Chuma. “You build it on trust, and right now, the people trust the dollar—not the ZiG.”
As the debate intensifies, Zimbabwe’s economic future hangs in the balance.