Zimbabwe is preparing to gradually end the use of the US dollar as a domestic currency and make the Zimbabwe Gold (ZiG) the country’s sole currency by 2030.
However, the World Bank has warned that moving too quickly could create serious economic problems, particularly if confidence in the local currency has not been firmly established.
The institution said a premature shift away from the US dollar could encourage people and businesses to move their money out of the country, increase the gap between official and parallel-market exchange rates and undermine recent progress in stabilising the economy.
Zimbabwe introduced the ZiG in 2024 after years of instability involving its previous currency. The government now wants to strengthen confidence in the ZiG and gradually reduce dependence on foreign currencies.
The World Bank stressed that the timing and pace of the transition will be crucial, noting that Zimbabwe’s previous attempts to force people away from the US dollar before establishing confidence in the local currency produced negative consequences.
Despite the concerns, Zimbabwe’s economy has recorded improvements in recent years. The World Bank expects the economy to grow by about five per cent in 2026, although growth could slow in 2027 due to the potential impact of El Niño-related drought.
The country is also working to resolve its longstanding debt problems and regain access to international financing, making economic stability and confidence in its currency particularly important.
