RBZ seeks business buy-in for new ZiG notes

The Reserve Bank of Zimbabwe (RBZ) has intensified engagement with the business community as part of a nationwide awareness campaign aimed at driving acceptance and usage of the upgraded ZiG banknote series.

The ZiG currency, introduced in April 2024 to replace the inflation-hit Zimbabwe dollar, is a key component of efforts to stabilise the economy and restore confidence in local monetary systems.

The upgraded banknotes — part of the BiG5 series — are designed to improve durability, enhance security features and increase ease of transactions. Authorities say the move responds to concerns over the physical quality of earlier ZiG notes while supporting broader goals of strengthening the currency's role in an economy still largely dominated by the US dollar.

Zimbabwe currently operates a dual-currency system, with the greenback remaining the preferred medium of exchange. However, the ZiG has steadily gained ground, now accounting for approximately 35–40% of transactions in the National Payments System.

Presenting the 2026 Monetary Policy Statement on February 27, RBZ Governor John Mushayavanhu announced that a new family of ZiG banknotes will be introduced from April 7, 2026. The rollout will initially include ZiG10, ZiG20 and ZiG50 denominations, with larger ZiG100 and ZiG200 notes to follow as demand increases.

The upgraded series builds on earlier denominations already in circulation, including ZiG1, ZiG2 and ZiG5 coins, as well as ZiG10 and ZiG20 notes, which were initially introduced to manage inflation expectations.

Dr Mushayavanhu said the central bank remains satisfied with the improved quality of the new notes and has urged the public and businesses to embrace them.

"To ensure greater acceptance and wider use of ZiG across the goods and service value chain, RBZ's provincial leadership has been holding dedicated sessions with the business community during the awareness campaign," he said.

The central bank is also working closely with the Bankers Association of Zimbabwe (BAZ) to expand the rollout of point-of-sale (POS) machines to support increased use of digital transactions in both local and foreign currencies.

Since its introduction, the ZiG has shown relative stability, contributing to a sharp decline in annual inflation — from 98.5% in April 2025 to 3.8% in February 2026. The exchange rate has remained steady at around 27 ZiG to US$1, while the parallel market premium has narrowed significantly from over 100% to below 20%.

Economists say these developments have helped anchor price stability, particularly in a market where pricing is closely tied to exchange rate movements.

The RBZ believes that improving confidence in the physical currency, alongside expanding digital payment infrastructure, will be critical in deepening ZiG adoption and reducing reliance on foreign currency in everyday transactions.