News / National
New high-quality ZiG banknotes on the way
03 Jun 2025 at 14:52hrs | Views
The Reserve Bank of Zimbabwe (RBZ) is set to introduce a new series of improved Zimbabwe Gold (ZiG) banknotes in denominations of ZiG10, ZiG20, ZiG50, ZiG100, and ZiG200, Governor John Mushayavanhu has announced.
The phased rollout of the enhanced banknotes will be guided by market demand, with the RBZ assuring the public that it will provide regular updates throughout the process. "The process of procuring and producing banknotes, however, can be lengthy, and the Reserve Bank will keep the public updated on the progress," said Mushayavanhu.
Currently, only ZiG10 and ZiG20 banknotes are in circulation, but their limited supply and fragile quality have led to concerns, as many of the notes have quickly become worn and soiled.
The introduction of the higher denominations is part of broader efforts by the central bank to strengthen the usability and acceptance of the ZiG, especially in the informal sector where transactions are predominantly cash-based.
As part of these efforts, the RBZ is working with the Government to promote wider use of the local currency by enforcing the installation and use of point-of-sale (POS) machines across all businesses, including informal traders. Authorities believe this will help integrate more of the informal economy into the formal financial system and boost the circulation of ZiG.
In addition, fiscal measures are being implemented to bolster demand for the local currency. Chief among these is the requirement for taxpayers whose income is at least 50 percent in local currency to settle their quarterly provisional income tax (QPD) obligations on a 50-50 basis - half in local currency and half in foreign currency.
This policy has significantly increased demand for the ZiG and is credited with contributing to the current exchange rate stability. The RBZ has emphasized that exchange rate stability is crucial in anchoring inflation expectations and restoring public confidence in the local currency.
As Zimbabwe continues its transition to a gold-backed monetary framework, the planned improvements in banknote quality and the broader currency reforms mark an important step in the central bank's strategy to entrench the ZiG as a reliable and stable medium of exchange.
The phased rollout of the enhanced banknotes will be guided by market demand, with the RBZ assuring the public that it will provide regular updates throughout the process. "The process of procuring and producing banknotes, however, can be lengthy, and the Reserve Bank will keep the public updated on the progress," said Mushayavanhu.
Currently, only ZiG10 and ZiG20 banknotes are in circulation, but their limited supply and fragile quality have led to concerns, as many of the notes have quickly become worn and soiled.
The introduction of the higher denominations is part of broader efforts by the central bank to strengthen the usability and acceptance of the ZiG, especially in the informal sector where transactions are predominantly cash-based.
In addition, fiscal measures are being implemented to bolster demand for the local currency. Chief among these is the requirement for taxpayers whose income is at least 50 percent in local currency to settle their quarterly provisional income tax (QPD) obligations on a 50-50 basis - half in local currency and half in foreign currency.
This policy has significantly increased demand for the ZiG and is credited with contributing to the current exchange rate stability. The RBZ has emphasized that exchange rate stability is crucial in anchoring inflation expectations and restoring public confidence in the local currency.
As Zimbabwe continues its transition to a gold-backed monetary framework, the planned improvements in banknote quality and the broader currency reforms mark an important step in the central bank's strategy to entrench the ZiG as a reliable and stable medium of exchange.
Source - online
