Mushayavanhu discards ZiG banknotes with Mangudya's signature

The Reserve Bank of Zimbabwe (RBZ), under new governor John Mushayavanhu, destroyed millions' worth of Zimbabwe Gold (ZiG) banknotes that had been printed with the signature of his predecessor, John Mangudya. When Mushayavanhu introduced the ZiG on April 5, it traded at US$1: 13.56 ZiG. However, pre-printed notes signed by Mangudya were destroyed to avoid their circulation. This decision led to a delay in the introduction of the new notes as they had to be reprinted, which was a costly and time-consuming process due to the imported material.

Mushayavanhu, appointed early by President Emmerson Mnangagwa, wanted a clear break from the past and did not want the new currency associated with Mangudya. The destruction of these notes, reportedly worth around US$5 million, reflects Mushayavanhu's intention to differentiate his administration from his predecessor's policies.

The process delayed the market introduction of the new currency by almost a month. The RBZ instructed banks to convert their Zimbabwe dollar balances into ZiG to simplify and stabilize monetary affairs. ZiG notes began circulating on April 30, 2024, with denominations ranging from ZiG 1 to ZiG 200, supported by US$575 million in reserves including foreign currency, gold, and other precious metals.