Yesha
Senior Member
- Jan 28, 2026
- 168
- 93
Zimbabwe’s push to reduce dependence on the US dollar faces a major obstacle: convincing citizens and businesses to trust the local currency after years of economic instability.
Introduced in April 2024, the Zimbabwe Gold (ZiG) was designed to restore confidence in the domestic currency. According to the Reserve Bank of Zimbabwe (RBZ), it is backed by foreign currency and precious metal reserves, including gold.
However, the existence of reserves and government efforts to promote the currency have not automatically translated into public confidence.
For many Zimbabweans, memories of previous currency crises continue to influence how they receive, spend and save their money. The concern is not simply whether the ZiG is backed by assets, but whether it can reliably preserve purchasing power over time.
Why are Zimbabweans reluctant to trust the ZiG?
Zimbabwe abandoned its local currency in 2009 following a period of hyperinflation and adopted a multicurrency system dominated by the US dollar. A domestic currency returned in 2018, but subsequent instability further weakened public confidence.Al Jazeera reports that primary school teacher Charles Mbwandarikwa receives part of his salary in ZiG and exchanges it quickly rather than holding on to it.
Mbwandarikwa says he lost his pension savings during the 2009 currency crisis. He also recalls his salary’s value falling from the equivalent of US$540 to US$40 by the end of 2018.
His experience illustrates why assurances about the ZiG may not be enough to persuade people to keep their savings in the local currency.
The challenge also extends to businesses. Clothing retailer Sesedzai Chigumira told Al Jazeera that she had made only a handful of sales in ZiG, reflecting the difficulties businesses face when customers continue to favour US dollars.
Can economic stability change public attitudes?
The RBZ has taken steps to strengthen the currency, including introducing an upgraded series of ZiG banknotes with revised designs and security features in April.However, economist Cornelius Dube argues that demand for the currency remains subdued. He says successful de-dollarisation will take time and requires policies that encourage people and businesses to choose the local currency voluntarily.
The government has also shifted away from its previous target of adopting a single currency by 2030, instead outlining a gradual, market-led transition towards greater use of the ZiG.
But expanding the currency’s use in transactions is different from persuading people to trust it as a store of value. People may use ZiG to pay for goods or meet obligations without necessarily feeling confident enough to save in it.
For de-dollarisation to succeed, businesses must be willing to accept the currency, workers must have confidence in their earnings, and consumers must believe their money will retain its value.
What should happen next?
Zimbabwe’s experience raises broader questions about the relationship between monetary policy and public trust. A currency may have official backing, but its long-term acceptance also depends on economic stability, confidence in policy and the willingness of businesses and consumers to use it.For citizens who have experienced repeated currency losses, rebuilding confidence is likely to require sustained results rather than assurances alone.
Discussion: Would you be willing to receive your entire salary in ZiG and keep your savings in the local currency? What would the government need to do to convince you to trust it?
