Staff Reporter

The Reserve Bank of Zimbabwe (RBZ) has officially unveiled a new series of ZiG banknotes, dubbed the “Big Five” series, in a significant move aimed at strengthening the country’s local currency and modernizing the physical cash ecosystem.

The new notes are scheduled to enter public circulation on April 7.

Presenting the new currency at a press briefing in Harare, RBZ Governor Dr. John Mushayavanhu confirmed that the rollout will commence with the lower denominations.

He explained that the initial release would focus on the ZiG10, ZiG20, and ZiG50 notes, with higher value denominations set to be introduced at a later stage to ensure a smooth and orderly transition.

According to Dr. Mushayavanhu, the primary objective behind introducing the physical cash is to enhance the efficiency of transactions for the public.

He emphasized that the new notes are designed to complement the existing currency, not replace it overnight.

“The rollout of physical cash is intended to improve transaction efficiency,” Dr. Mushayavanhu stated, adding that the new notes will circulate alongside existing ones to ensure continuity in the market.

The central bank chief was keen to dispel any concerns regarding the potential inflationary impact of the new notes.

He clarified that the introduction of the “Big Five” series does not signify an increase in the overall money supply.

Rather, it represents a mechanical conversion of electronic balances already held in the banking system into physical form.

“This move is part of broader currency modernization efforts,” Dr. Mushayavanhu said, positioning the launch as a technical upgrade rather than a monetary policy expansion.

To facilitate the changeover, the RBZ has directed banks to exchange electronic holdings for the new physical currency.

The Governor detailed the process, noting that old notes will be systematically withdrawn from circulation as the new ones gain traction.

This gradual withdrawal is intended to prevent market disruption and maintain public confidence in the currency.

In a parallel development aimed at smoothing retail transactions, the central bank is reintroducing ZiG coins.

Dr Mushayavanhu pointed out that a shortage of small denominations had led to pricing distortions, where consumers were often rounded up to the nearest note value.

The reintroduction of coins is expected to resolve this issue by providing exact change, thereby protecting consumers from unfair pricing practices.

Furthermore, the RBZ has moved to increase withdrawal limits.

According to the Governor, this adjustment is meant to enhance access to physical cash for individuals and businesses.

However, he reiterated the bank’s long-term vision, encouraging the public to continue embracing digital payment platforms as the future of commerce.

Providing an economic backdrop to the currency launch, Dr Mushayavanhu offered an optimistic assessment of the country’s financial health.

He noted that the economic fundamentals are showing signs of improvement, evidenced by a period of stable exchange rates and low inflation.

In a key indicator of economic resilience, he revealed that foreign currency reserves have strengthened, now covering approximately one and a half months of import cover.

This buffer, he suggested, provides a solid foundation for the new currency series as it enters the market.