HARARE – The Reserve Bank of Zimbabwe (RBZ) has abandoned its fixed 2030 deadline for ending the multi-currency system, shifting its focus instead to achieving key economic conditions, while also preparing to roll out new ZiG banknotes aimed at improving transaction efficiency and strengthening the local currency.
RBZ Governor John Mushayavanhu said the central bank will now prioritise factors such as low inflation, a robust import cover of 3–5 months (up from the current 1.5 months), an efficient foreign exchange market, and a stable ZiG backed by strong demand before any full transition to a monocurrency.
“Even if Zimbabwe eventually switches fully to ZiG, US dollar contracts will continue to be paid in USD, and foreign currency accounts will remain unchanged,” Mushayavanhu said.
In a related move, the RBZ will begin circulating its new “Big Five” series of ZiG banknotes from April 7, starting with ZiG10, ZiG20, and ZiG50 denominations. Higher denominations will follow later.
The rollout is designed to improve transaction efficiency and modernize Zimbabwe’s currency system, with old notes gradually withdrawn.
The bank also plans to reintroduce ZiG coins to address pricing distortions caused by shortages of small denominations.
Authorities emphasised that the new notes do not increase the money supply, but simply convert electronic balances into physical cash, ensuring liquidity while maintaining monetary stability.
Other highlights from the RBZ’s monetary policy statement include that the primary policy rate will remain at 35% to maintain monetary discipline, cash withdrawal fees have been capped at 2%, with Point-of-Sale charges limited to 1.5%.
Charges for balance inquiries and cash deposits have been removed.
Mobile Network Operators are required to audit all accounts and deactivate unauthorized or fraudulent ones to combat mobile money fraud.
Exporters will continue to receive 30% of their earnings in ZiG, while small-scale gold miners will now be paid 90% in USD and 10% in ZiG, down from 100% in USD.
Foreign reserves currently stand at US$1.3 billion, including 4.2 tonnes of gold valued at US$738 million and nearly half a billion in cash.
Mushayavanhu noted that economic fundamentals are improving, with stable exchange rates, low inflation, and foreign currency reserves covering about one and a half months of imports.
