RBZ Assures Public New ZiG Banknotes Will Not Increase Prices or Money Supply
The imminent introduction of a new family of Zimbabwe Gold (ZiG) banknotes will not trigger increases in the prices of goods and services, the Reserve Bank of Zimbabwe (RBZ) has said.
RBZ Governor John Mushayavanhu stressed that the rollout will be carefully managed under strict monetary controls to safeguard price and exchange rate stability.
Speaking in an interview with The Sunday Mail, Dr Mushayavanhu said the issuance of the upgraded notes will be strictly demand-driven and will not result in an expansion of money supply.
Also Read: RBZ Says New ZiG Notes Ready, Rollout Set for Early 2026
Inflation Falls to Single Digits
The introduction of the new ZiG notes comes at a time when macroeconomic indicators are showing improvement.
Annual inflation declined to 4.1 percent in January 2026 — the first time in nearly three decades that it has fallen to single-digit levels — reflecting tighter monetary discipline and growing confidence in the local currency.
Dr Mushayavanhu said the improved fundamentals provide a stable environment for the upgrade of the banknotes.
“As advised in previous Monetary Policy Statements, the upgrading of ZiG banknotes is at an advanced stage, and specific details will be contained in the forthcoming Monetary Policy Statement to be issued in February 2026,” he said.
No Increase in Reserve Money
The RBZ Governor emphasised that the new notes will not inject excess liquidity into the market.
He explained that banks will obtain physical cash through existing reserve accounts held at the central bank, meaning there will be no net increase in reserve money.
Ordinarily, banks submit cash orders to the central bank based on client demand. In this case, they will simply exchange electronic balances for physical notes.
“Stated differently, banks will be swapping electronic balances for physical notes with no change in the quantity of money,” Dr Mushayavanhu said.
Demand-Driven Cash Injection
According to the central bank, any increase in cash circulating in the economy will be directly linked to genuine market demand and levels of economic activity.
“The injection of cash into the market will be demand-driven, linked to the needs of economic agents and changes in economic activity,” the Governor said.
Full details of the rollout, including timelines and security features of the upgraded ZiG banknotes, are expected to be announced in the 2026 Monetary Policy Statement later this month.
Flipcash is Your Trusted PayPal & Crypto Exchange Partner in Zimbabwe — WhatsApp +263 77 163 9263
The post RBZ Assures Public New ZiG Banknotes Will Not Increase Prices or Money Supply appeared first on iHarare News.
