Mono-Currency Fears Resurface as CEOs Meet Government in Victoria Falls

By Shingirai Vambe

As Zimbabwe navigates a delicate economic phase marked by currency reforms, monetary policy shifts and renewed debate over the future of the country’s currency regime, the forthcoming CEO Africa Roundtable conference in the Resort City of Victoria Falls is expected to provide a critical platform for engagement between government, business leaders and economic policymakers.

The high-level gathering, scheduled for March 18-21 2026, will bring together captains of industry, policy makers and regional business executives to deliberate on Zimbabwe’s economic trajectory. President Emmerson Dambudzo Mnangagwa is expected to officially open the conference, signalling the government’s commitment to engaging the private sector at a time when economic policy decisions are under intense scrutiny.

The 2025 annual conference ran concurrently with ZANU PF conference in Mutare, and no executive attended as they were up with their party business.

The meeting comes at a pivotal moment for Zimbabwe’s economy, following months of consultations between government, business leaders and financial institutions on issues ranging from currency stability to investment confidence. These discussions culminated in the presentation of the latest monetary policy statement by John Mushayavanhu, the Governor of the Reserve Bank of Zimbabwe.

Zimbabwe’s central bank currently finds itself walking a tightrope as it attempts to stabilise the economy while restoring confidence in the local currency. Recently, the RBZ introduced new denominations of the Zimbabwe Gold (ZiG), a move authorities say is aimed at improving liquidity and facilitating smoother transactions in the domestic market.

However, the development has sparked widespread debate among citizens and economic observers. Many Zimbabweans fear that expanding the supply of the local currency could ignite inflationary pressures reminiscent of past monetary crises. Economic analysts, on the other hand, argue that the introduction of additional denominations is a pragmatic response to the prevailing liquidity challenges, particularly the shortage of ZiG circulating within the economy.

For months, businesses and consumers have complained about the limited availability of local currency, a situation that has pushed many transactions toward the parallel market and distorted the exchange rate. Analysts say the shortage of ZiG effectively constrained the market, forcing economic activity to rely heavily on the United States dollar.

Despite these concerns, both the RBZ and the Ministry of Finance have expressed satisfaction with the relative stability of the official exchange rate. Authorities argue that the limited circulation of ZiG has helped maintain inflation at single-digit levels, at least according to official statistics.

Yet the reality on the ground tells a more complex story. Across Zimbabwe, the United States dollar continues to dominate day-to-day commercial activity. From supermarkets and fuel stations to service providers and informal traders, the greenback remains the preferred currency for most transactions.

Governor Mushayavanhu has repeatedly acknowledged this reality, maintaining that the US dollar will continue to play a role in Zimbabwe’s economy for the foreseeable future. According to the central bank, the country will maintain a multi-currency environment for some time, allowing both the US dollar and ZiG to circulate simultaneously.

In practice, however, the ZiG is increasingly being used primarily for statutory payments such as licenses, taxes and utility bills. In some sectors, businesses are applying exchange rates of around US$1 to ZiG37 when settling these obligations.

“It is against this backdrop that the upcoming CEO Africa Roundtable discussions in Victoria Falls are expected to focus heavily on currency management, monetary policy direction and the broader roadmap toward a potential mono-currency system,” said the Chairman, Oswel Binha.

Government and central bank officials are likely to face tough questions from the private sector, particularly regarding the long-term plan for de-dollarisation. For many businesses, the prospect of returning to a single local currency raises painful memories of the hyperinflation era that culminated in the economic meltdown of 2008.

Private sector representatives have warned that a premature shift toward a mono-currency system could undermine investor confidence and destabilise the fragile economic gains made in recent years. Industry leaders argue that any transition away from dollarisation must be gradual, transparent and backed by strong macroeconomic fundamentals.

In response to these concerns, the central bank says it is working closely with industry and commerce to map out a sustainable pathway toward currency reform.

One of the key initiatives being developed by the RBZ is the rollout of a sophisticated electronic foreign exchange trading platform designed to modernise Zimbabwe’s forex market.

The proposed system will introduce a fully automated price discovery mechanism, removing manual interventions that have historically characterised the country’s foreign exchange market.

For years, the “willing buyer, willing seller” framework has been criticised by some market participants who believe the central bank occasionally influences exchange rate outcomes. Such perceptions have contributed to persistent gaps between the official and parallel market rates.

The new electronic trading platform is expected to address these concerns by introducing an algorithm-based system where foreign exchange orders are matched automatically and anonymously.

According to Governor Mushayavanhu, the system will allow participants to submit buy and sell orders electronically without revealing their identities during the trading process.

“Participants will enter the system anonymously. They sell, we buy, and the orders are matched electronically,” Mushayavanhu explained.

“Only after the trades are matched will the participants know their counterparties, and then settlement will occur.”

The anonymous order-matching mechanism is designed to prevent collusion between market players while ensuring that exchange rates reflect genuine supply and demand dynamics.

At present, the RBZ determines the official exchange rate using a weighted average derived from transaction data submitted by commercial banks. Critics argue that the manual collection and processing of this data can introduce inefficiencies and raise questions about transparency.

By contrast, the automated trading platform will allow exchange rates to emerge directly from real-time market activity, potentially improving accuracy and credibility.

The central bank says development of the system is already at an advanced stage. Commercial banks have been actively involved in testing the platform and providing feedback during the user acceptance phase.

“Some of the bankers here have participated in testing and provided very useful feedback, which we are incorporating into the system,” Mushayavanhu said.

Before the platform is officially launched, the RBZ plans to subject the system to independent verification by an internationally recognised institution, a step aimed at reinforcing market confidence in the new infrastructure.

“Once we have perfected the system, it will be validated externally. We want credible verification that the system works,” the governor added.

Economists say the initiative could mark a turning point in Zimbabwe’s efforts to restore confidence in its currency framework. Economic analyst Persistence Gwanyanya, welcomed the move, saying the introduction of an automated trading platform could significantly enhance transparency in the foreign exchange market.

The rollout of the algorithm-based platform signals a broader shift toward modernising Zimbabwe’s financial infrastructure. If successfully implemented, it could potentially end decades of manual exchange rate setting and move the country closer to internationally recognised forex trading practices.

As business leaders converge in Victoria Falls for the CEO Africa Roundtable, these issues, currency stability, exchange rate transparency and the future of Zimbabwe’s monetary system,  are expected to dominate the agenda.

For government officials and policymakers, the conference will offer an opportunity to reassure investors and the private sector that Zimbabwe’s economic reforms are aimed at building a stable and predictable financial environment.

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