The International Monetary Fund warned Zimbabwe on Thursday to explain its plan for eliminating the United States dollar by 2030 while noting the ZiG currency has failed to gain public acceptance since its April 2024 introduction. The ZiG monetary base surged 215 percent from April through September 2024 despite Reserve Bank efforts to restrict money supply, and dollarization exceeds 80 percent of transactions. The government accumulated nearly 600 million dollars in unpaid domestic obligations in 2024, and the IMF projected economic growth at 6 percent this year before slowing to 3.5 percent without fiscal reforms.
The Fund urged authorities to strengthen governance of the Mutapa Investment Fund, rationalize tax incentives, and maintain spending discipline while pursuing debt relief through the Structured Dialogue Platform with international creditors.
The Fund urged authorities to strengthen governance of the Mutapa Investment Fund, rationalize tax incentives, and maintain spending discipline while pursuing debt relief through the Structured Dialogue Platform with international creditors.
