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RBZ prepares to introduce new ZiG notes
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The Reserve Bank of Zimbabwe (RBZ) has reassured the public that there is no need to rush to exchange existing currency notes ahead of the introduction of new ZiG banknotes, emphasizing that the transition will be smooth and carefully managed.
Speaking during a State of the Economy engagement in Bulawayo on Thursday, RBZ Deputy Governor Dr Innocent Matshe said the central bank is taking a measured approach to the rollout to maintain stability and prevent unnecessary panic in the market.
"The new ZiG notes will be in the market late this quarter or in the second quarter and will have strong, durable features," Dr Matshe said. "There is no need for people to rush to exchange the current notes with new ones. They will remain legal tender."
The remarks come amid growing public interest over the impending release of the new notes, which authorities say are part of broader monetary policy measures aimed at strengthening confidence in the local currency framework.
Officials have indicated that the rollout will be gradual and systematic, aligned with actual economic developments and genuine cash demand for transactions. The introduction of the notes will reflect market requirements rather than flooding the economy with excess liquidity.
The RBZ also moved to allay concerns that the new notes could trigger inflationary pressures, explaining that the injection of cash will not increase the overall money supply. Instead, banks will exchange the ZiG notes with their electronic bank balances (RTGS) held at the central bank, ensuring the move changes only the form of money rather than the amount in circulation.
Economists say the approach highlights the RBZ's continued focus on monetary discipline and stability, key pillars of Zimbabwe's ongoing economic stabilisation efforts.
By stressing that existing notes remain legal tender and that the rollout will be demand-driven, the central bank is aiming to prevent speculative behaviour and avoid disruptions to normal banking and trading activities. The RBZ urged the public and businesses to continue transacting as usual, with further details to be communicated as the rollout progresses.
Speaking during a State of the Economy engagement in Bulawayo on Thursday, RBZ Deputy Governor Dr Innocent Matshe said the central bank is taking a measured approach to the rollout to maintain stability and prevent unnecessary panic in the market.
"The new ZiG notes will be in the market late this quarter or in the second quarter and will have strong, durable features," Dr Matshe said. "There is no need for people to rush to exchange the current notes with new ones. They will remain legal tender."
The remarks come amid growing public interest over the impending release of the new notes, which authorities say are part of broader monetary policy measures aimed at strengthening confidence in the local currency framework.
Officials have indicated that the rollout will be gradual and systematic, aligned with actual economic developments and genuine cash demand for transactions. The introduction of the notes will reflect market requirements rather than flooding the economy with excess liquidity.
The RBZ also moved to allay concerns that the new notes could trigger inflationary pressures, explaining that the injection of cash will not increase the overall money supply. Instead, banks will exchange the ZiG notes with their electronic bank balances (RTGS) held at the central bank, ensuring the move changes only the form of money rather than the amount in circulation.
Economists say the approach highlights the RBZ's continued focus on monetary discipline and stability, key pillars of Zimbabwe's ongoing economic stabilisation efforts.
By stressing that existing notes remain legal tender and that the rollout will be demand-driven, the central bank is aiming to prevent speculative behaviour and avoid disruptions to normal banking and trading activities. The RBZ urged the public and businesses to continue transacting as usual, with further details to be communicated as the rollout progresses.
Source - The Chronicle
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