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Mnangagwa’s Roadmap To Disaster – Government Insists On Total Removal Of US Dollar13 August 2025
Mnangagwa’s Roadmap To Disaster – Government Insists On Total Removal Of US Dollar
By A Correspondent
The Reserve Bank of Zimbabwe (RBZ) is pushing forward with a plan to transition from a multicurrency regime to a domestic monetary system by 2030, despite concerns about potential risks and challenges.
According to RBZ Governor Dr.
John Mushayavanhu, “The road map will crystalise in the National Development Strategy 2, under the stewardship of the RBZ, which chairs the NDS2 Thematic Working Group on Macroeconomic Stability and Financial Deepening (MESFIND). ”
He added that “while the policy’s ultimate goal is clear, its design will undoubtedly encapsulate the need to maintain current stability, preserve foreign currency accounts and respect existing USD-denominated contracts. ”
However, stakeholders have expressed concerns about the fate of their foreign-currency deposits once the multi-currency system expires in 2030. “Stakeholders relayed concerns about their foreign-currency deposits at the end of the multi-currency system in 2030,” Dr.
Mushayavanhu said, sparking demands for legally binding guarantees.
RBZ Deputy Governor Dr.
Innocent Matshe acknowledged the challenges posed by low liquidity, saying, “This economy is affected by low liquidity, especially in US dollars, which we cannot control at all. ” He believes that de-dollarization is the best route to gain control over monetary policy and drive economic growth.
The plan to remove the US dollar could lead to market instability, decreased investor confidence, and increased volatility in the stock exchange.
The transition could also lead to higher inflation if not managed properly, and Zimbabwe has experienced high inflation in the past.
While the government’s plan to transition to a domestic monetary system may have good intentions, it is crucial to address the concerns and challenges associated with de-dollarization to avoid potential risks and instability.
The RBZ needs to refine the timeline and implementation details, build adequate foreign exchange reserves, and ensure policy consistency to make the transition successful.
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