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ZiG usage surges to half of all transactions in Zimbabwe
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Nearly half of all transactions processed through Zimbabwe's National Payment System are now being conducted in Zimbabwe Gold (ZiG), marking a dramatic rise in adoption of the country's gold-backed currency and signalling growing public confidence.
According to the Reserve Bank of Zimbabwe (RBZ), ZiG transactions surged from ZiG7.86 billion in April 2024 — which accounted for just 26% of national payments — to a remarkable ZiG56.8 billion, or 43%, by May 30, 2025.
RBZ Governor Dr John Mushayavanhu said the leap in usage highlights increasing confidence among the public and businesses in the structured currency, introduced in April last year to stabilise Zimbabwe's economy and restore trust in the local monetary system.
"It is important to note that the prevailing macroeconomic stability has improved ZiG's demand for transactions and saving purposes," Dr Mushayavanhu said. "The velocity of ZiG has significantly moderated, suggesting that an increasing number of economic agents are now keeping ZiG in their bank accounts for relatively longer periods."
He added that growing use of ZiG had also driven up demand for physical currency in circulation, reinforcing its acceptance as a medium of exchange.
The currency's growing popularity coincides with a concerted effort by the RBZ to build gold reserves that underpin ZiG. Last week, President Emmerson Mnangagwa visited the RBZ vaults and inspected 3 400kg of gold reserves — a notable increase from 1 500kg held a year ago. The central bank aims to grow its reserve stockpile to five tonnes by the end of the year.
Dr Mushayavanhu also addressed recent public concerns about the availability of physical ZiG notes, especially in rural and underserved communities. He said the RBZ had ramped up cash distribution efforts in collaboration with commercial banks and was actively supporting the rollout of ZiG cash through automated teller machines (ATMs) and banking halls.
"The Reserve Bank is actively working to enhance access to ZiG cash through ATMs, and banks are currently in the process of configuring their systems to facilitate this cash disbursement," he said.
Banks have been instructed to regularly inform customers about ZiG cash availability and to maintain adequate supplies in both urban and rural branches. The RBZ, meanwhile, continues to monitor public demand and will adjust cash injections accordingly.
Responding to concerns that increasing physical cash in circulation could spur inflation, Dr Mushayavanhu reassured the public that the central bank's strategy was measured and controlled.
"The injection of ZiG notes and coins into the economy by the Reserve Bank will not result in excess liquidity," he said. "The cash being introduced is exchanged for existing electronic balances in the banking system, meaning it is not creating new money but simply improving the accessibility and convenience of existing funds."
He said the RBZ's approach aligns with its "cash-lite" policy, which encourages the use of electronic payments for large transactions while ensuring that small day-to-day purchases — especially in the informal sector — can be settled using physical cash.
"As such, the Reserve Bank will not issue more ZiG cash than what is already existing in the banks' deposits at the central bank," he explained.
He also noted that recent reforms to distribution systems had improved the availability of cash in most banks, particularly through banking halls, although ATM functionality was still being rolled out across institutions.
ZiG was introduced in April 2024 to replace the rapidly devaluing Zimbabwe dollar and to restore stability to the country's financial system. Backed by gold and other reserves, it is part of a broader economic strategy to combat inflation, restore trust in local currency, and reduce reliance on the US dollar.
As of mid-2025, economic indicators show early signs of recovery, with inflation slowing and greater use of the local currency in formal transactions. The RBZ says sustained macroeconomic stability, together with increased access to cash and growing reserve backing, will be key to ensuring long-term success for ZiG and the broader economic reform agenda.
According to the Reserve Bank of Zimbabwe (RBZ), ZiG transactions surged from ZiG7.86 billion in April 2024 — which accounted for just 26% of national payments — to a remarkable ZiG56.8 billion, or 43%, by May 30, 2025.
RBZ Governor Dr John Mushayavanhu said the leap in usage highlights increasing confidence among the public and businesses in the structured currency, introduced in April last year to stabilise Zimbabwe's economy and restore trust in the local monetary system.
"It is important to note that the prevailing macroeconomic stability has improved ZiG's demand for transactions and saving purposes," Dr Mushayavanhu said. "The velocity of ZiG has significantly moderated, suggesting that an increasing number of economic agents are now keeping ZiG in their bank accounts for relatively longer periods."
He added that growing use of ZiG had also driven up demand for physical currency in circulation, reinforcing its acceptance as a medium of exchange.
The currency's growing popularity coincides with a concerted effort by the RBZ to build gold reserves that underpin ZiG. Last week, President Emmerson Mnangagwa visited the RBZ vaults and inspected 3 400kg of gold reserves — a notable increase from 1 500kg held a year ago. The central bank aims to grow its reserve stockpile to five tonnes by the end of the year.
Dr Mushayavanhu also addressed recent public concerns about the availability of physical ZiG notes, especially in rural and underserved communities. He said the RBZ had ramped up cash distribution efforts in collaboration with commercial banks and was actively supporting the rollout of ZiG cash through automated teller machines (ATMs) and banking halls.
"The Reserve Bank is actively working to enhance access to ZiG cash through ATMs, and banks are currently in the process of configuring their systems to facilitate this cash disbursement," he said.
Responding to concerns that increasing physical cash in circulation could spur inflation, Dr Mushayavanhu reassured the public that the central bank's strategy was measured and controlled.
"The injection of ZiG notes and coins into the economy by the Reserve Bank will not result in excess liquidity," he said. "The cash being introduced is exchanged for existing electronic balances in the banking system, meaning it is not creating new money but simply improving the accessibility and convenience of existing funds."
He said the RBZ's approach aligns with its "cash-lite" policy, which encourages the use of electronic payments for large transactions while ensuring that small day-to-day purchases — especially in the informal sector — can be settled using physical cash.
"As such, the Reserve Bank will not issue more ZiG cash than what is already existing in the banks' deposits at the central bank," he explained.
He also noted that recent reforms to distribution systems had improved the availability of cash in most banks, particularly through banking halls, although ATM functionality was still being rolled out across institutions.
ZiG was introduced in April 2024 to replace the rapidly devaluing Zimbabwe dollar and to restore stability to the country's financial system. Backed by gold and other reserves, it is part of a broader economic strategy to combat inflation, restore trust in local currency, and reduce reliance on the US dollar.
As of mid-2025, economic indicators show early signs of recovery, with inflation slowing and greater use of the local currency in formal transactions. The RBZ says sustained macroeconomic stability, together with increased access to cash and growing reserve backing, will be key to ensuring long-term success for ZiG and the broader economic reform agenda.
Source - Sunday Mail
