The Reserve Bank of Zimbabwe (RBZ) has begun producing redesigned ZiG banknotes, which will soon be introduced as part of the central bank’s de-dollarisation strategy aimed at transitioning to a mono-currency system within five years.
The new notes will incorporate advanced security features to combat counterfeiting, along with enhanced paper quality and durability to reduce wear and tear. Many users have reported that current notes deteriorate quickly, especially in high-volume transactions, making them difficult to handle. Banks and retailers have also expressed concerns about the cost and inconvenience of managing worn notes, leading to calls for better-quality banknotes.
Currently, only the ZiG10 and ZiG20 notes are in circulation. The new series will cover the full range of denominations introduced in April 2024.
In an interview, RBZ Governor Dr. John Mushayavanhu stated that production of the redesigned notes is progressing well. He emphasized that the new ZiG notes would improve quality and durability, benefiting the public. Dr. Mushayavanhu added that the rollout schedule would be announced at the appropriate time.
Globally, central banks periodically redesign currency to prevent counterfeiting, incorporate durable materials, and extend the lifespan of banknotes, which helps reduce replacement costs.
This move coincides with an increase in the use of the local currency, ZiG, which now accounts for over 35% of all transactions, up from 15% last year. Price stability has been maintained, with the cost of basic goods remaining mostly unchanged since October. In March, food inflation was at -0.5%, and non-food inflation was 0.2%, signaling a foundation for the successful implementation of a mono-currency system.
Dr. Mushayavanhu also mentioned that the RBZ is working to build its foreign currency reserves to support the transition to a mono-currency system. This accumulation of reserves is seen as one of the key conditions for the successful implementation of the plan.
Introduced in April 2024, the ZiG currency replaced the Zimbabwe dollar, with authorities stating that sufficient forex and gold reserves would restore public confidence in the local currency.
Dr. Mushayavanhu reassured the public that the redesigned notes should not be seen as a new currency, but simply as a refinement of the existing one to meet international standards.
Economist and RBZ Monetary Policy Committee member, Mr. Persistence Gwanyanya, noted that the redesign is a sign of the government’s commitment to reinforcing confidence in the local currency and ensuring its long-term stability.