- The International Monetary Fund (IMF) has called on Zimbabwe for more details on its plan to phase out the US dollar by 2030.
- Zimbabwe aims to make the Zimbabwean Gold (ZiG), a gold-backed currency, its only legal tender by 2030.
- The IMF raised questions about whether the ZiG will be used only within Zimbabwe or internationally, and how deposits will be managed.
- The IMF stated that uncertainty persists due to a lack of operational details on Zimbabwe’s transition to a single currency.
- Zimbabwe has adopted a five-year plan to strengthen its local currency and move away from a multi-currency system.
The International Monetary Fund (IMF) has requested that Zimbabwe clarify its strategy to move away from the US dollar by the year 2030. The country announced that it plans for the local gold-backed Zimbabwean Gold (ZiG) to become its sole legal tender.
According to the IMF, Zimbabwe has not shared key information about its de-dollarization plan, especially regarding whether the ZiG will be permitted for only domestic use or also for international transactions. The IMF also asked if bank deposits will still be allowed in both the US dollar and the ZiG, or only in the local currency.
In a recent meeting, the IMF stressed the need for clear details on how the transition will affect those who hold foreign currency deposits. The organization stated, “Additional clarity on the mono-currency transitional plan would help reduce uncertainty. The authorities should provide more clarity on the operational implications of the mono-currency transitional plan,” according to the Zimbabwe Star.
Zimbabwe’s central bank released an economic blueprint that sets 2030 as the deadline for making ZiG the nation’s exclusive currency. The blueprint is part of a broader move away from the multi-currency policy introduced in 2009, which let the country use several foreign currencies including the US dollar.
The push for the ZiG comes as Zimbabwe’s economy faces challenges, with slowing growth in its gross domestic product (GDP). Officials hope that backing the ZiG with gold will help support its value and boost confidence in the country’s plan to use a single national currency. The IMF awaits further details from Zimbabwe before providing additional assessment or support.
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