RBZ Governor Rules Out Forced USD Conversion in ZiG Shift

Reserve Bank of Zimbabwe Governor John Mushayavanhu moved to calm public anxiety, stating that holders of US dollar balances will not be forced to convert their savings into ZiG when the country transitions to a mono-currency system. The assurance, reported by iHarare, directly addresses fears that the government would forcibly seize foreign currency deposits to prop up the struggling local unit. The pledge comes amid deep-seated public mistrust of the ZiG, which has suffered repeated devaluations since its launch. Bankers have warned that even the perception of forced conversion could trigger capital flight and accelerate informal dollarization, undermining the formal banking sector and tax collection. The core vulnerability remains the central bank’s inability to inspire confidence without legally binding, irreversible guarantees.