Zimbabwe Must End ‘Dollar Grip’ to Regain Economic Sovereignty

ZiG banknotes. (Cynthia R Matonhodze/Bloomberg)

(Bloomberg) -- Zimbabwe must take the necessary steps to end its reliance on the dollar and increase the use of its own currency, Information Secretary Nick Mangwana said.

“The benefits of de-dollarization far outweigh the costs, making it an urgent imperative for Zimbabwe to break free from the US dollar grip,” Mangwana said in an opinion piece published in the Herald newspaper. 

More than 80% of Zimbabwe’s transactions are denominated in dollars, according to government data. The nation lifted a ban on the US currency at the start of the coronavirus pandemic in March 2020 to help ease an acute shortage of foreign exchange. 

Reducing reliance on the greenback is an important step toward regaining economic sovereignty, stability and growth, Mangwana said. It will help promote the local currency and diversify the country’s reserves, he said. 

Read: Zimbabwe Leader Says ZiG to Become Sole Currency Before 2030

Last week, President Emmerson Mnangagwa hinted that the country’s bullion-backed ZiG, its sixth attempt in 15 years to have a functioning currency, may become the sole legal tender before 2030.

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