BY RAY NDLOVU
Zimbabwe’s cabinet said it has approved a roadmap to abandon US dollars in favor of its bullion-backed currency in transactions, a strategy that Finance Minister Mthuli Ncube may unveil next week.
“On modalities to operationalize the ZiG currency as legal tender for use in the economy, a dedollarization roadmap is now in place,” Information Minister Jenfan Muswere told reporters Tuesday at a post-cabinet briefing held in the capital, Harare.
A Treasury spokesperson said via text message that Ncube may make an announcement next week, without providing a specific date.
The southern African nation is trying to shake off its heavy dependence on the dollar, the centerpiece of most economic activity for the past 15 years. The US currency now accounts for about 70% of all economic transactions in the economy, according to central bank data. At the April launch of the gold-backed ZiG, short for Zimbabwe Gold, dollars were used in 85% of transactions.
President Emmerson Mnangagwa hinted at the possible adoption of the ZiG as the sole currency as early as 2026, ahead of an initial 2030 deadline — a proposal supported by bankers.
In the meanwhile, authorities plan to increase penalties against persons involved in “unjust price hikes, manipulation of the ZiG currency, smuggling and all forms of unfair trade practices,” to boost its use, Muswere said.
Authorities will increase fines from a minimum $200 to a maximum $5,000 or the ZiG equivalent, he said, without specifying the prior
SOURCE: BNN BLOOMBERG