New ZiG notes ready for delivery, as RBZ assures of durable stability

The new ZiG notes are ready for delivery through financial institutions and authorised channels, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu has announced, while also emphasising that the central bank will continue working to ensure durable price and exchange rate stability.

In an interview with The Sunday Mail, Dr Mushayavanhu said the rollout of the new notes will be “gradual and systematic”, and “strictly aligned with economic developments and genuine cash demand for transactions”.

“The Reserve Bank’s readiness is advanced, with the new ZiG notes ready for delivery through financial institutions and other authorised channels,” he said.

“The rollout will be gradual and systematic, strictly aligned with economic developments and genuine cash demand for transactions.”

Rollout is expected within the first three months of 2026. Injection of the new notes into the market, he said, will not result in increases in money supply as banks will exchange the ZiG cash with their electronic bank balances (RTGS) held at the Reserve Bank.

“A comprehensive awareness campaign will educate on note features, durability and the process’s stability-preserving nature. This prudent approach builds on 2025 gains, ensuring seamless convenience without undermining ZiG stability.”

Dr Mushayavanhu also said prices and the exchange rate are expected to remain stable for the foreseeable future, supported by improved foreign exchange management systems and strong domestic and external sector fundamentals. The ZiG is being boosted by rising reserves, which are now stand at US$1,1 billion, enough to cover 1,2 months of imports.

*Stability*

During 2025, inflation remained subdued, with month-on-month ZiG inflation averaging 0,4 percent between February and November.

The stability is being reflected in steadier prices for basic goods like bread. Exchange rate stability has also been maintained, with the ZiG trading largely between ZiG26 and ZiG27 to the US dollar for most of the year. The parallel market premium has narrowed significantly to below 20 percent, from levels exceeding 40 percent previously.

Dr John Mushayavanhu believes that the outlook for next year is positive.

“The outlook for 2026 is positive, building on the year 2025’s solid macroeconomic stability, underpinned by low and stable inflation, sustained exchange rate stability and attainment of the envisaged 5 percent real GDP growth under National Development Strategy 2 (NDS 2),” he added.

“Inflation will continue to moderate, and the Reserve Bank seeks to achieve single-digit annual inflation by the first quarter 2026 and achieve and maintain the SADC macroeconomic convergence criteria thresholds of 5-7 percent by 2029, in line with the transitional plan to a mono-currency. This will be achieved through the interplay of prudent monetary policy, fiscal discipline and exchange rate stability.

“The Reserve Bank sees exchange rate stability persisting in 2026 and beyond, underpinned by improvements in the foreign exchange management systems and supported by strong domestic and external sector fundamentals such as robust foreign currency inflows, healthy balance of payments, growing foreign reserves and prudent money supply management.”

The central bank, Dr Mushayavanhu added, will continue its reserve accumulation strategy with the aim of eventually attaining the desired optimal reserves of three to six months import cover, consistent with international benchmarks and the regional indicative macroeconomic convergence target under the region.

“Since April 2024, the Reserve Bank has aggressively pursued a foreign currency reserve accumulation strategy through mandatory mining royalties, outright gold purchases, utilising part of export surrender receipts and leveraging historic foreign currency receipts boosted by gold price rallies alongside rebounding platinum group metal (PGM) prices,” he said.

“Reflecting these developments, foreign currency reserves, comprising gold, other precious minerals and foreign deposits and cash, grew from US$276 million in April 2024 to US$1,1 billion as of December 15, 2025, achieving about 1,2 months of import cover.

“These foreign currency reserves holdings consistently provide over five times coverage for the ZiG component of reserve money and fully back the entire stock of ZiG deposits in the banking system.”

He said the strong monetary conditions have increased confidence in the ZiG currency, with people and businesses now keeping ZiG in banks for longer, trusting it to hold its value.

It is believed that these developments have created trust, predictability and credibility in the economy. *_-Sunday Mail_*