Rapid Dollarization to Stymie Zimbabwe’s Plan to Drop Greenback
- Ditching use of greenback will roil economy, says Imara CEO
- Treasury says authorities mulling over next steps on currency
A person counts US dollars in Mutoko, Zimbabwe.
Photographer: Jekesai Njikizana/AFP/Getty ImagesThis article is for subscribers only.
The US dollar will remain the dominant currency in Zimbabwe even after the government’s December 2025 deadline to stop its use in the economy, the country’s largest independent asset manager said.
Imara Asset Management, which oversees more than $100 million, said the dollarization of the economy is actually accelerating since authorities curbed the local currency’s availability in July to preserve its value. Data from the national statistics agency showed 80% of all economic transactions in Zimbabwe are now done in the greenback, up from 75% earlier this year.