By A Correspondent- Zimbabwe’s continued reliance on the United States dollar is exposing the limited confidence businesses have in the country’s local currency, with the greenback accounting for the overwhelming majority of commercial transactions despite government efforts to promote the ZiG.

The Confederation of Zimbabwe Industries (CZI) 2026 Half Year Business Environment Insights Report reveals that 77% of business sales during the first six months of 2026 were conducted in US dollars, highlighting the currency’s entrenched position in the economy.

The findings, based on a survey of 541 companies across different sectors and regions, represent a significant increase from 63.5% recorded during the corresponding period in 2024.

“A total of 77% of business sales were in USD in the first half of 2026, up from 63.5% in the first half of 2024, an increase of 13.5% in two years,” the report said.

The figures present an uncomfortable reality for authorities pursuing greater adoption of the Zimbabwe Gold (ZiG), as businesses continue to favour the US dollar for their transactions rather than placing greater reliance on the domestic currency.

Despite official efforts to strengthen the ZiG, its growing difficulty in competing with the greenback raises questions about public and business confidence in the country’s monetary policies

The World Bank has also cautioned Zimbabwe against rushing into a mono-currency arrangement, warning against prematurely abandoning the US dollar in favour of the local currency.
Independent economists have similarly raised concerns that forcing businesses and citizens to abandon the greenback could destabilise the economy.

They have warned that such a move could “risk widening parallel market premiums, triggering capital flight, and repeating past hyperinflationary collapses”.

Zimbabwe is now reconsidering its currency roadmap, moving away from the previously announced 2030 deadline for introducing a mono-currency system towards a market-driven strategy intended to gradually increase ZiG usage.

However, with US dollar transactions continuing to account for more than three-quarters of business sales, the latest CZI findings suggest that confidence in the local currency remains a major obstacle to the government’s monetary ambitions.