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RBZ to introduce higher denomination ZiG notes
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The Reserve Bank of Zimbabwe (RBZ) has announced plans to introduce higher denominations of the Zimbabwe Gold (ZiG) currency by the third quarter of 2025. This move aims to address challenges with the current low denominations, which have limited the currency's practicality in everyday transactions.
RBZ Governor John Mushayavanhu made the announcement during the presentation of the 2025 Monetary Policy Statement on Thursday.
Governor Mushayavanhu acknowledged the limitations of the current highest denomination, ZiG20, which struggles to cover basic purchases.
"I might as well tell you we are going to be introducing higher denomination ZiG notes so that we ensure that, you know, the ZiG note that you can get can buy something meaningful. Because right now, the highest denomination is ZiG20, and the best it buys you is half a loaf of bread," he said.
The RBZ is targeting the rollout of these higher denominations by the third quarter of this year to ensure the currency better serves the needs of the economy.
Mushayavanhu also addressed concerns about the limited availability of ZiG notes in rural areas, denying claims that residents have rejected the currency in favor of foreign currencies like the US dollar or South African rand.
"It is not that they do not want it, but it is because it has not reached them. You know, for you to get ZiG, you have to be involved in some economic activity," he explained.
The RBZ is reportedly working on measures to improve the distribution of ZiG notes across all regions to promote their adoption.
Despite the central bank's efforts, large parts of the formal sector have rejected the ZiG currency due to its volatility. Many businesses have implemented measures to prevent its use.
This rejection was fueled by a surge in inflation, with the ZiG month-on-month inflation rate jumping by 6.8 percentage points in January 2025 to 10.5%, up from December 2024.
The introduction of higher denominations is expected to stabilize the currency's acceptance and improve its utility, though it remains to be seen whether this will address broader issues of market confidence and inflationary pressures.
The RBZ's commitment to improving the accessibility and functionality of the ZiG currency reflects its ongoing efforts to bolster financial inclusion and restore public trust in Zimbabwe's monetary system.
RBZ Governor John Mushayavanhu made the announcement during the presentation of the 2025 Monetary Policy Statement on Thursday.
Governor Mushayavanhu acknowledged the limitations of the current highest denomination, ZiG20, which struggles to cover basic purchases.
"I might as well tell you we are going to be introducing higher denomination ZiG notes so that we ensure that, you know, the ZiG note that you can get can buy something meaningful. Because right now, the highest denomination is ZiG20, and the best it buys you is half a loaf of bread," he said.
The RBZ is targeting the rollout of these higher denominations by the third quarter of this year to ensure the currency better serves the needs of the economy.
Mushayavanhu also addressed concerns about the limited availability of ZiG notes in rural areas, denying claims that residents have rejected the currency in favor of foreign currencies like the US dollar or South African rand.
"It is not that they do not want it, but it is because it has not reached them. You know, for you to get ZiG, you have to be involved in some economic activity," he explained.
The RBZ is reportedly working on measures to improve the distribution of ZiG notes across all regions to promote their adoption.
Despite the central bank's efforts, large parts of the formal sector have rejected the ZiG currency due to its volatility. Many businesses have implemented measures to prevent its use.
This rejection was fueled by a surge in inflation, with the ZiG month-on-month inflation rate jumping by 6.8 percentage points in January 2025 to 10.5%, up from December 2024.
The introduction of higher denominations is expected to stabilize the currency's acceptance and improve its utility, though it remains to be seen whether this will address broader issues of market confidence and inflationary pressures.
The RBZ's commitment to improving the accessibility and functionality of the ZiG currency reflects its ongoing efforts to bolster financial inclusion and restore public trust in Zimbabwe's monetary system.
Source - online
