Zimbabwe News Update
newzimbabwe
7 min read
IOLThe International Monetary Fund (IMF) says Zimbabwe’s economy remains highly dollarised, with any de-dollarisation policies needing gradual implementation while the Confederation of Zimbabwe Industries has called for further disinflation strategies into 2026 to correct pricing and manage stubbornly high inflation.Zimbabwe is pushing for an end to the use of US Dollars across the economy by 2030, coinciding with a possible two year extension of President Emmerson Mnangagwa’s rule originally scheduled to end in 2028.
Mnangagwa’s party, Zanu PF party has resolved to extend the Zimbabwean leader’s tenure and to end dollarisation by 2030.However, the IMF has said in an interview that “Zimbabwe remains highly dollarized” with any confidence in a local currency needing to “be built through credible fiscal and monetary policies, a strengthened FX market, and the absence of quasi-fiscal operations such as providing subsidies or financing government programs” outside of the budget framework.The Zimbabwe Gold (ZiG) local currency Zimbabwe says is backed by foreign currency reserves is largely shunned by locals for transactions.
The IMF said Zimbabwe has to ringfence any de-dollarisation efforts by a stable policy environment that will accrue confidence for the local unit of exchange.“Confidence in macro-economic policy and the currency is reinforced by a predictable, rules-based policy environment and progress on economic governance. Advancing these reforms—alongside clear, consistent economic policy implementation—would help anchor expectations and bolster confidence,” the IMF’s chief of mission to Zimbabwe, Wojciech Stanislaw Maliszewski, said by email.The Confederation of Zimbabwe Industries (CZI) has called for further disinflation strategies over the next few months.
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