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RBZ holds ZiG50, ZiG200 from circulation

by Staff reporter
31 May 2024 at 16:16hrs | Views
The Reserve Bank of Zimbabwe (RBZ) has decided not to introduce ZiG50 and ZiG200 notes to the market in the near future due to concerns that larger denominations could fuel inflation, according to central bank governor John Mushayavanhu.

During the Chamber of Mines of Zimbabwe 2024 annual conference held in Victoria Falls yesterday, Mushayavanhu stated that the ZiG, introduced in April this year, has been strengthening against the US dollar.

"Since we introduced the ZiG, the economy has continued to grow across all sectors without any negative impacts or disruptions," he said. "We have introduced most of the denominations we planned, including ZiG1, ZiG2, ZiG5, ZiG10, and ZiG20, which are currently in circulation."

Mushayavanhu emphasized the bank's focus on smaller denominations to address the issue of change shortages. "We are increasing the circulation of smaller denominations to alleviate the problem of making change," he added.

He also explained the reluctance to introduce larger denominations, stating, "We have been cautious about introducing larger denominations like ZiG50 and ZiG200 because they are perceived as inflationary. While we have printed them, it will be some time before they are put into circulation."

The governor noted that the exchange rate for the ZiG has remained stable and has even strengthened against the US dollar since its introduction.

However, a recent survey by The Standard revealed that ZiG notes are not readily available through banks, leading to shortages in various sectors including transport, supermarkets, and the informal market, causing business disruptions.

Source - the herald