The Reserve Bank of Zimbabwe (RBZ) says it will work with mobile network operators to iron out differences between local and foreign currency transactions under the multicurrency system.
The bank said the move is meant to give consumers freedom to transact seamlessly in either Zimbabwe Gold (ZiG) or US dollars, following growing concerns that ZiG users face higher costs when paying for essential services on mobile money platforms.
In some instances, goods and services quoted in local currency are significantly more expensive than their US dollar equivalents, with businesses ignoring the official exchange rate.
Introduced in April last year to replace the rapidly devaluing Zimbabwe dollar, ZiG has been relatively stable, gaining ground in the payment ecosystem and accounting for more than 40% of transactions. Inflation has also eased, with monthly rates holding under three percent and the annual target capped at 30%.
Despite this stability, confidence remains patchy. Mobile money is the backbone of everyday transactions from groceries to school fees — yet ZiG payments still lag behind US dollar usage.
“The Reserve Bank will engage mobile money operators to ensure that there is equal trading in both domestic and foreign currencies in line with the multicurrency system,” the bank said in its 2025 Mid-Term Monetary Policy Statement Stakeholder Feedback Report.
Stakeholders also flagged high banking fees as a major hurdle, arguing that the charges are pushing individuals and businesses away from formal banking services. Some warned the situation could entrench informal financial systems.
The RBZ said it is leaning on moral suasion to convince banks to adopt fairer pricing models. Earlier this year, Governor Dr John Mushayavanhu urged lenders to cut their dependence on fee income, which accounted for 22% of earnings, compared to just 13,46% from lending.
The multicurrency system, anchored on the US dollar, has been in place since 2009. The RBZ says resolving the ZiG mobile money challenges and bringing banking charges down will be key to building confidence and boosting financial inclusion.
