“It’s Not A New Currency”: RBZ Governor Insists Zimbabweans Should Not Be Apprehensive About ZiG Redesign

RBZ To Roll Out Stronger ZiG Banknotes, Dismisses New Currency Fears

The Reserve Bank of Zimbabwe (RBZ) has confirmed that it is producing redesigned ZiG banknotes, but Governor Dr John Mushayavanhu has assured the public that this does not mean a new currency is being introduced.

In an interview with The Herald, Dr Mushayavanhu said:

“I must reiterate that the Reserve Bank is not going to issue a new currency, and in this regard, the public should not be apprehensive. Instead, the Reserve Bank is merely redesigning the current banknotes to enhance quality in line with international standards.”

The redesigned notes will cover the full range of denominations announced at the launch of ZiG in April 2024. Currently, only ZiG10 and ZiG20 notes are in circulation.

Focus on durability and security

RBZ said the new notes will have stronger paper quality and enhanced security features to combat counterfeiting.

Dr Mushayavanhu explained:

“The Reserve Bank is working on the modernisation of the ZiG banknote series as advised in the recent mid-term Monetary Policy Statement. The new ZiG banknotes will be re-designed including improved quality and durability for the convenience of the transacting public. In this regard, the production process of the improved banknotes has progressed well and is at an advanced stage.”

He added that the public will be advised of the official rollout date once final preparations are complete.

Many users have complained that current ZiG notes quickly fray, fade and become difficult to handle. Banks and retailers have also raised concerns about the cost of maintaining worn-out notes.

An RBZ insider confirmed that such redesigns are common in many central banks worldwide.

“It is standard practice for central banks to periodically redesign currency to prevent counterfeiting and to improve durability, thereby reducing replacement costs,” the source said. [I cannot verify this]

Building confidence in ZiG

The ZiG currency, introduced in April 2024 to replace the Zimbabwe dollar, has been gaining ground in the economy. According to RBZ, ZiG now accounts for more than 35 percent of all transactions, up from 15 percent last year.

Authorities say price stability has also been achieved. Food inflation stood at minus 0,5 percent in March, while non-food inflation registered at 0,2 percent.

Dr Mushayavanhu stressed that the redesign supports the central bank’s broader plan to shift towards a mono-currency system within the next five years.

“The Reserve Bank is strategically accumulating foreign currency reserves to support the transition to mono-currency and to ensure sustainability of the local currency. The build-up of foreign currency reserves is just one of the preconditions for successful transition to mono-currency,” he said.