Johnson Progress

The Reserve Bank of Zimbabwe (RBZ) has announced that new ZiG currency notes are being printed and ready for distribution, with a carefully managed public release scheduled for the first quarter of 2026.

Central bank Governor, Dr John Mushayavanhu, emphasized that the physical notes will enter circulation gradually to align with genuine economic demand without increasing the total money supply.

Dr Mushayavanhu explained that the introduction of cash will be methodical and responsive to real transactional needs.

He stated that the central bank’s strategy is designed to build on recent economic gains while safeguarding the currency’s stability.

“The Reserve Bank is fully prepared, with the new ZiG notes ready for distribution via financial institutions and approved channels,” Dr. Mushayavanhu said.

“Their release will be gradual and systematic, and strictly aligned with economic developments and genuine transactional needs,” he added.

Crucially, the Governor outlined the mechanics of the rollout, noting that it would not be inflationary.

He clarified that commercial banks would acquire the new physical ZiG notes by exchanging their existing electronic balances held at the RBZ, thereby converting digital money into cash without expanding the overall monetary base.

“Circulating the new notes will not expand money supply, as banks will obtain the cash by converting their electronic balances (RTGS) held at the RBZ,” Dr Mushayavanhu confirmed.

The announcement comes against a backdrop of what the central bank describes as strengthening macroeconomic stability.

Dr Mushayavanhu pointed to low inflation and a stable exchange rate throughout much of 2025 as foundational for the next step in the ZiG’s lifecycle.

He reported that average month-on-month ZiG inflation stood at just 0.4 percent between February and November 2025, leading to more predictable prices for basic goods.

Furthermore, the Governor expressed strong confidence in the economic outlook for 2026, citing robust foreign exchange reserves and disciplined policy.

He revealed that the nation’s foreign reserves have grown significantly, providing a solid backing for the currency.

“Zimbabwe’s reserves have risen to about US$1,1 billion, sufficient to cover roughly 1,2 months of imports,” Dr Mushayavanhu stated, adding that these reserves fully cover all ZiG deposits in the banking system.

Looking forward, the RBZ has set ambitious formal targets for continued stability.

The Governor detailed the bank’s intention to curb inflation further and align with regional benchmarks, as part of a longer-term vision for the currency.

“The RBZ aims to achieve single-digit annual inflation by the first quarter of 2026 and align with SADC convergence targets of 5–7 percent by 2029, in line with plans to transition to a mono-currency system,” he said.

To ensure public familiarity and trust in the new notes, the central bank will launch a nationwide awareness campaign ahead of the rollout, educating citizens on the banknotes’ security features and durability.

The RBZ asserts that this phased approach to introducing physical ZiG is a calculated step towards enhancing transactional convenience while firmly maintaining the hard-won stability of the young currency.