“Zimbabwe to Ban Us Dollar For Exclusive ZiG Use Sooner Than Expected”, President Mnangagwa Declares

Zimbabwe to Ban Us Dollar For Exclusive ZiG Use Sooner Than Expected, President Mnangagwa Declares

In a major policy shift, Zimbabwean President Emmerson Mnangagwa has revealed plans to phase out the use of the US dollar in favour of the country’s own currency, the Zimbabwe Gold (ZiG), before the 2030 deadline.

This transition would eliminate the use of US dollars, which currently account for over 80% of transactions in the country. Last October, Mnangagwa extended the use of the US dollar by five years until 2030 to alleviate concerns about impending currency policy changes.

Also read: Zimbabwe Plans to Jail Anyone Using the US Dollar?: Nick Mangwana Clears the Air Amid Viral Claims

Mnangagwa Announces ZiG as Sole Legal Tender Before 2030

Speaking at an event in the border city of Mutare, Mnangagwa emphasized the importance of establishing the ZiG as the sole legal tender in the country. He stated that within the next two years, the ZiG is expected to have fully penetrated the market, at which point he will issue a directive to make it the only acceptable currency.

“In two years, in fact two years is too far off, but there will come a time when our ZiG currency has fully penetrated the market, then I will give a directive that the country will be using the ZiG only. If you go to the shops to buy with the US dollar, they will refuse it. Even those who were performing and entertaining us today, who were being given US dollar tokens, in two months’ time you (they) will be given the ZiG and no US dollars because that is our currency and we should propel it,” he said.

Also read: RBZ Launches Snitch Hotline: FIU Urges Zimbos to Report Businesses Rejecting ZiG or Using Black Market Rates

Why Zimbabwe Wants to Ban Us Dollar For Exclusive ZiG Use Sooner

The move to phase out the US dollar will effectively bring an end to the multicurrency system that has been in place since 2009. Currently, the US dollar accounts for over 80% of all transactions in the country.

Mnangagwa justified the decision, stating that Zimbabwe cannot continue to rely on other countries’ currencies, especially those who do not have a favourable view of the nation. He cited US President Joe Biden’s administration as an example, saying that Zimbabwe should not use the currency of a country that “does not like us.”

“Biden (US President Joe) does not like us, but you like the money from his country, does that work? So as Zanu PF we cannot keep using and relying on a currency that belongs to people who do not like us because one day they will try to hamper our efforts, then we will not have a leg to stand on,” President Mnangagwa said.

Also read: “Ko MaZiG?” President Emmerson Mnangagwa Gives 80-Year-Old Man US$800 For Dancing At His Grandson Yasha Mafidi’s Memorial

Previous Currency Reforms

This is not the first time Zimbabwe has implemented currency reforms. In June 2019, the country discontinued the use of the US dollar in favour of reintroducing the Zimbabwe dollar. However, the ban on US dollars was lifted just a year later, in March 2020, to address a severe shortage of foreign exchange due to the COVID-19 pandemic.

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