Zimbabwe is charting a bold monetary pivot. President Emmerson Mnangagwa announced that the country plans to phase out the US dollar entirely by mid-2026, a shift reported from Daily Maverick. The plan centers on introducing a new state-backed currency called the Zimbabwe gold, or ZiG, which would become the sole accepted form of payment within the next two years. Mnangagwa emphasized that this transition would gradually push the dollar out of Zimbabwe’s monetary system and reshape everyday transactions.
According to the president, ZiG distribution will ramp up across towns and cities so that, in two years, retailers nationwide will stop accepting US dollars from customers. At present, an estimated four-fifths of all financial exchanges in Zimbabwe are conducted using dollars, underscoring how deeply the greenback has become entrenched in the economy and the challenges of shifting to a new currency framework.
The ZiG initiative would mark the sixth national currency to be introduced in Zimbabwe over roughly the last 15 years. Each earlier replacement has aimed to curb dollar dominance, largely in response to episodes of hyperinflation that eroded confidence in the local unit. The repeated currency reforms reflect a broader struggle to stabilize prices, restore purchasing power, and restore faith in national monetary policy.
The state’s plan lays bare a broader debate about monetary sovereignty, inflation control, and the risks associated with rapid transitions. For businesses, households, and financial institutions, the coming period will require realignment of pricing, budgeting, and access to financial services. The government is expected to provide policy safeguards, public guidance, and infrastructure to support ZiG’s rollout, including digital payment rails and conversion mechanisms for existing balances and contracts.
Regional experiences with currency reform offer a cautionary backdrop. Trade partners and neighboring economies have graphed the consequences of moving away from hard currency at varying speeds. In some cases, governments have tightened penalties or imposed constraints on foreign currency usage, illustrating how monetary policy choices can ripple through prices, wages, and consumer confidence. Such context helps explain why this transition is being watched closely by economists, business leaders, and the public alike. The outcome will hinge on credible stabilization plans, credible inflation expectations, and the capacity of the financial system to support a seamless shift to ZiG.
As Zimbabwe proceeds, observers will be looking for clear milestones, transparent communication from authorities, and practical steps that protect savings and the flow of goods and services. The ZiG strategy is not just about a new name for money. It signals a recalibration of monetary credibility, the potential re-prioritization of domestic financial institutions, and a redefined negotiation between citizens and the state on how value is created and stored. The coming years will reveal whether this bold move can deliver lasting price stability and scaled acceptance across sectors, or whether transitional challenges will require recalibration and additional policy support.
Note: regional commentary highlights that currency reforms in neighboring countries have sometimes carried penalties or restrictions on foreign currency usage, a factor that adds complexity to Zimbabwe’s ambitious timetable. The evolving policy landscape will influence how businesses price goods, how households manage budgets, and how investors assess Zimbabwe’s macroeconomic trajectory.