By A Correspondent

Authorities in Zimbabwe are pressing ahead with plans to phase out the use of the United States dollar in domestic transactions, as part of a strategy to fully adopt the newly introduced Zimbabwe Gold (ZiG) currency.

According to the Daily News, Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu confirmed on Wednesday that government was determined to build up the country’s foreign currency and gold reserves to support this transition.

“We are building reserves because we want to move towards a mono-currency system where all domestic transactions are done using the ZiG,” Mushayavanhu said.

He emphasized that once sufficient reserves are in place, the ZiG will become the sole legal tender for all transactions within Zimbabwe — including fuel, passports, and other essential services currently paid for in foreign currency.

“It is only a matter of time before the parallel market is completely subdued,” he declared, expressing confidence that the measures being taken will create the foundation for a stable mono-currency economy.

This announcement has sparked concern across economic and business sectors, with many warning that the premature removal of the US dollar could trigger inflationary shocks and reignite the currency instability Zimbabweans have repeatedly endured.

Still, Mushayavanhu remained optimistic, saying:

“Once we reach the desired thresholds in our reserves, we will be able to smoothly transition to full use of the ZiG. That is our goal.”

Critics argue that confidence in the local currency remains fragile, and without a broader economic recovery or guaranteed price stability, removing the US dollar could risk collapsing public trust once again.

Despite these fears, the government appears intent on pushing forward — setting the stage for what could be another turbulent chapter in Zimbabwe’s ongoing currency saga.