‘YOUR USD MONEY IN BANKS IS VERY SAFE’…Reserve Bank of Zimbabwe moves to quel currency transition fears
THE Reserve Bank of Zimbabwe (RBZ) has moved to quell public anxiety over the impending shift to a mono-currency, giving a firm guarantee that no citizen will lose the value of their United States Dollar balances during the transition.Energy transition report
In an exclusive interview, RBZ Deputy Governor Dr Innocent Matshe outlined the central bank’s strategy to restore confidence in the local currency, saying the shift, scheduled to be complemented by the introduction of new bank notes on 7 April 2026, will not mirror the painful currency reforms of previous years.Sunday Mail subscription
Dr Matshe was categorical in dismissing fears that the move would result in the forced conversion or erosion of foreign currency holdings, a traumatic experience for many Zimbabweans during past economic overhauls.Local events calendar
“I want to be categorical that the idea of people losing the value of their balances in accounts when we move to mono-currency is an issue that should bother the public,” Dr Matshe said.
Reserve Bank Of Zimbabwe
“Let me say that the only thing that is going to change is that the ZIG will be used locally. The local currency will be for local transactions.”Energy transition report
He emphasised that the autonomy of account holders would be respected under the new framework.
“No balance, not even a penny, will be exchanged for any other currency without the owner’s consent and without the owner’s participation.
“The idea is that foreign currency-denominated accounts will continue into mono-currency and Zimbabweans can rest assured that the only time that those balances will be exchanged for local currency is when and if the holder of that account wants to do so,” Dr Matshe explained.
Dr Matshe illustrated how the system would operate in practice, allowing for seamless transactions without forcing conversions.
“Let us say you go into a supermarket and you do not have enough local currency in your account. You can, at the point of sale, request that funds be moved from your FCA, your foreign currency account, into your local currency account, and you can use your card to pay.
“This is a crucial element going forward and that change into mono-currency will not end with people losing value. No one is going to lose their money. Absolutely no one. It is not a devaluation exercise,” he said.
Addressing concerns regarding potential inflationary pressures stemming from the introduction of new banknotes on April 7, Dr Matshe assured that the exercise would be strictly controlled.
He said the new notes are merely a replacement for old ZIG banknotes and will not lead to an increase in money supply.
“Excessive money printing, the notes that are coming are going to replace old ZIG banknotes. No excess money supply is going to result in the move towards the new banknotes. Going forward, the liquidity in our market is going to be watched on a minute-by-minute basis by the Reserve Bank, and there will not be any excess printing of money,” he said.
Dr Matshe also said recent data indicate that the economy is on a stable footing, with inflation remaining in single digits.
He noted that the bank’s projections suggest this stability will persist through the year.
“Inflation has been in single digits since the month of January and we have just received the inflation numbers for March and we are still in single digits. In fact, we are at 4,4 percent annual inflation this month and at 0,5 percent month-on-month inflation this month.
“We expect that we will end the year still in single digits, regardless of the recent adjustments, unless there is another external shock to this country, to this economy. Otherwise, we remain in single-digit inflation to the end of the year. That’s our projections,” he said.
As the April 7 deadline for the new notes approaches, the RBZ’s assurances are aimed at cementing public trust and ensuring a smooth transition to the mono-currency system.
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