Zimbabwe Urged to Reduce Reliance on the US Dollar
Zimbabwe must take decisive steps to end its reliance on the US dollar and increase the use of its own currency, according to Information Secretary Nick Mangwana.
“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 stated in an opinion piece published in the Herald newspaper.
Currently, over 80% of Zimbabwe’s transactions are conducted in US dollars, as per government data. The nation lifted a ban on the US currency in March 2020 at the onset of the coronavirus pandemic to alleviate an acute foreign exchange shortage.
Mangwana emphasized that reducing reliance on the US dollar is crucial for regaining economic sovereignty, stability, and growth. He added that it would promote the local currency and diversify the country’s reserves.
President Emmerson Mnangagwa recently hinted that Zimbabwe’s bullion-backed ZiG, its sixth attempt in 15 years to establish a functioning currency, might become the sole legal tender before 2030.
