Zimbabwe is trying to increase the use of its local ZiG currency and reduce dependence on the US dollar. However, many citizens remain reluctant to trust the currency after years of financial instability.
The Zimbabwe Gold (ZiG) currency was introduced in April 2024. The government hopes it will help restore confidence in the country’s financial system.
According to Al Jazeera, Zimbabweans remain cautious about saving and spending in ZiG despite efforts by the central bank to strengthen the currency.
Why Zimbabweans still prefer the US dollar
Zimbabwe has experienced several major currency crises over the past two decades.
In 2009, the country abandoned its local currency following hyperinflation. It then adopted a system that relied heavily on foreign currencies, particularly the US dollar.
A domestic currency returned in 2018. However, further instability weakened public confidence.
As a result, many Zimbabweans continue to prefer dollars for shopping, business and savings.
For some, the concern comes from personal experiences of losing money during earlier crises.
Workers fear losing the value of their savings
Primary school teacher Charles Mbwandarikwa told Al Jazeera that he quickly exchanges the ZiG portion of his salary.
He receives about one-third of his earnings in the local currency.
However, he remains concerned about its long-term value.
Mbwandarikwa lost his pension savings during Zimbabwe’s 2009 currency crisis.
He also recalled how the dollar value of his salary fell sharply after the return of a local currency in 2018.
These experiences continue to influence how he manages his income.
Zimbabwe’s central bank introduces new ZiG notes
The Reserve Bank of Zimbabwe (RBZ) says the ZiG is backed by foreign currency and precious metal reserves, including gold.
In April 2026, the bank introduced upgraded ZiG banknotes with new designs and security features.
Meanwhile, the RBZ reported annual ZiG inflation of 3.7% in September.
However, lower inflation does not automatically mean that people trust a currency.
Economist Cornelius Dube told Al Jazeera that demand for ZiG remains weak.
He explained that the amount of currency in circulation must reflect how much people actually want to use it.
Businesses report limited demand for ZiG
Many businesses also face challenges when encouraging customers to use the local currency.
Clothing retailer Sesedzai Chigumira said she had completed only a small number of sales in ZiG.
Her experience reflects the continued popularity of the US dollar in everyday transactions.
Businesses may prefer dollars because customers already trust them.
Meanwhile, customers may avoid ZiG because they worry about future changes in its value.
This creates a difficult situation for authorities seeking to increase the currency’s use.
Can Zimbabwe reduce its dependence on the dollar?
Zimbabwe’s central bank has changed its approach to reducing dollar dependence.
Previously, authorities aimed to introduce a single-currency system by 2030.
However, the RBZ has moved away from that target. It now supports a gradual transition based on market conditions.
The government has also encouraged greater use of ZiG in tax payments and public transactions.
Nevertheless, experts say lasting confidence will depend on economic stability.
Dube believes Zimbabwe can reduce its reliance on the dollar over time. However, he warned that the process cannot happen quickly.
For now, the country’s biggest challenge is convincing citizens that ZiG can protect the value of their earnings and savings.
Without that confidence, the US dollar is likely to remain an important part of Zimbabwe’s economy.