Imminent ZiG notes rollout won't trigger price hikes

The imminent rollout of new Zimbabwe Gold (ZiG) banknotes will not lead to increases in prices of goods and services, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu has assured, as the central bank continues to strengthen macroeconomic fundamentals.

Speaking to The Sunday Mail, Dr Mushayavanhu said the issuance of the upgraded ZiG notes will be strictly demand-driven, with no net increase in money supply. This, he said, will safeguard price and exchange rate stability while supporting continued economic growth.

"Banks will simply exchange electronic balances for physical cash through existing reserve accounts at the Reserve Bank," he explained. "There will be no change in the quantity of money, meaning the injection of cash is linked to genuine market needs rather than monetary expansion."

The announcement comes amid single-digit inflation for the first time in nearly three decades, with annual inflation dropping to 4,1 percent in January 2026. Dr Mushayavanhu attributed the economic stability to prudent monetary policy, including tight liquidity management, a market-determined exchange rate, and stronger coordination between fiscal and monetary authorities.

He also highlighted the recent appreciation of the ZiG against the US dollar, driven by improved export earnings and diaspora remittances, which boosted foreign currency inflows to US$16,2 billion in 2025, up from US$13,3 billion in 2024. Official reserves now stand at US$1,2 billion, up from less than US$276 million at ZiG's introduction in April 2024.

"The convergence between interbank and parallel market rates signals growing confidence in the official market and ensures consistency in pricing of goods and services," he said, noting that the move has strengthened consumer purchasing power and encouraged long-term business planning.

Dr Mushayavanhu confirmed that detailed information on the rollout of the new family of banknotes will be provided in the 2026 Monetary Policy Statement later this month, reiterating that the move will not induce inflationary pressures.

The RBZ has also continued to pursue a reserves accumulation strategy, targeting both foreign currency and precious metals like gold, positioning Zimbabwe to achieve its Vision 2030 target of three to six months import cover ahead of schedule.

The rollout of the new notes is thus part of a broader strategy to strengthen the local currency, reinforce economic stability, and support sustained growth in the country.