IMF seeks explanation on how Zimbabwe is planning to dump US$, says ZiG still too weak

The International Monetary Fund (IMF) has implored the Zimbabwean government to clarify on its plan to end the use of the US dollar by 2030.

 

IMF warns that uncertainties risk undermine confidence in the economy.

 

In its latest review, the IMF noted that the Zimbabwean currency Zimbabwe Gold (ZiG) introduced in 2024, has yet to gain wide acceptance, indicating a weakness.

 

Despite some stability since its sharp devaluation last year, dollarisation remains high and confidence in monetary policy is weak.

 

The Fund raised questions over whether the ZiG will be restricted to domestic transactions or if banks will still be permitted to hold US dollar deposits.

 

The IMF also cautioned that fiscal pressures threaten the current fragile stability.

 

It urged government to engage creditors on Zimbabwe’s $21 billion debt burden and to strengthen monetary and exchange-rate policy frameworks.

 

 

The central bank has requested IMF technical support to establish a functional interbank foreign exchange system, while banks are already restricting dollar lending ahead of the planned transition.

The IMF said policy credibility and clear communication will be critical to winning public trust as Zimbabwe moves toward a mono-currency economy.