Zimbabwe fast-tracking ZiG banknotes rollout

The Reserve Bank of Zimbabwe (RBZ) is accelerating efforts to deliver new Zimbabwe Gold (ZiG) banknotes, with Governor Dr John Mushayavanhu assuring the public that the rollout will happen "in the shortest possible time," despite the complexity of the process.

Speaking as ZiG marked its first anniversary, Dr Mushayavanhu acknowledged that designing and releasing new currency typically takes between six months and two years, depending on the jurisdiction. However, he emphasised the bank's commitment to meeting international standards while delivering the notes swiftly.

"The Reserve Bank is working on enhancing the quality and design of the ZiG banknotes in line with international standards, as promised in the 6 February 2025 Monetary Policy Statement," he said. "Empirical evidence from across jurisdictions suggests that the design and rollout of new currency notes is a specialised process that can take some time, usually ranging from a minimum of six months to two years."

He said the RBZ is navigating the complex but necessary steps involved in the production of the new currency with urgency and care, to ensure the final product meets durability, security, and usability standards.

The launch of the ZiG last year was a major milestone in Zimbabwe's long-term vision to shift from a multi-currency system to a single, stable national currency. According to the central bank, this goal is gaining traction, with price and exchange rate stability offering a solid foundation for a smooth transition.

Dr Mushayavanhu noted that local currency usage has significantly improved, with 35 percent of all transactions now being conducted in ZiG, compared to 15 percent at the same time last year. He attributed this growth to policy measures aimed at strengthening the currency and containing inflation.

"Currency and price stability are the main anchors of de-dollarisation and transition to a monocurrency regime. The Government will continue to implement measures to strengthen the local currency," he said.

Price stability has remained a hallmark of the monetary environment over recent months, with food inflation recorded at minus 0.5 percent and non-food inflation at 0.2 percent in March. Dr Mushayavanhu explained that this reflects growing public confidence in the ZiG and improved economic fundamentals.

Month-on-month inflation, which had briefly spiked in October 2024 and January 2025 due to exchange rate and rental shocks, has since moderated. Inflation dropped to 0.5 percent in February and declined further to -0.1 percent in March, a trend the RBZ hopes to sustain.

"In the outlook period, the stability of ZiG, anchored by the tight monetary policy stance, is expected to remain sustainable, thus durably anchoring price and exchange rate expectations," Dr Mushayavanhu added.

The RBZ projects that by the end of 2025, annual inflation will be contained below 30 percent-a level deemed consistent with the achievement of the country's 6 percent real GDP growth target.

Looking ahead, Dr Mushayavanhu reaffirmed that the de-dollarisation strategy will continue to follow a gradual, market-led approach to avoid economic disruptions and safeguard the progress made so far.

"Gradual and incremental but notable milestones should be achieved along the way," he said. "The gradual approach will ensure that no disruptive shocks are introduced to the economy, which may result in bank runs and reversal of the anticipated gains from de-dollarisation."

With the ZiG showing signs of resilience and acceptance, and the promise of improved banknotes on the horizon, the central bank believes Zimbabwe is on a solid path toward currency sovereignty by 2030.