The Reserve Bank of Zimbabwe (RBZ) has announced that newly redesigned ZiG banknotes are ready for circulation, with distribution set to be done through commercial banks and authorised outlets once the rollout begins.
RBZ Governor Dr John Mushayavanhu said all technical preparations have been completed but emphasised that the release of the notes will be tightly controlled to protect price stability and prevent exchange rate volatility.
Phased Introduction Expected in Early 2026
In an interview, Dr Mushayavanhu explained that the physical ZiG notes will be introduced gradually, taking into account prevailing economic conditions and the actual demand for cash.
He said the rollout is expected to start in the first quarter of 2026, allowing authorities to closely track market behaviour and ensure the transition is orderly.
No Increase in Money Supply
The governor reassured the public that issuing the new notes will not expand the money supply. Instead, banks will receive physical cash in exchange for their existing electronic balances held at the central bank.
This mechanism, he said, is intended to preserve monetary discipline while improving access to cash for day-to-day transactions.
Awareness Campaign Planned
To support a smooth transition, the RBZ will launch a nationwide public education programme to inform citizens about the new banknotes, including their security features, durability and the measures in place to maintain currency stability.
Dr Mushayavanhu said the move builds on economic progress made during 2025 and is aimed at improving transactional convenience without undermining confidence in the ZiG.
Stable Outlook for Prices and Exchange Rate
The central bank expects inflation and the exchange rate to remain stable in the near term, supported by improved foreign currency management systems and strengthening economic fundamentals.
Zimbabwe’s foreign currency reserves have increased to approximately US$1.1 billion, enough to cover about 1.2 months of imports, a development the RBZ says reinforces confidence in the local currency.
Looking ahead, Dr Mushayavanhu said the 2026 economic outlook remains positive, with growth projected at 5 percent under National Development Strategy 2.
He added that inflation is expected to continue declining, with the central bank targeting single-digit annual inflation by the first quarter of 2026 and alignment with SADC macroeconomic benchmarks by 2029, as Zimbabwe works toward a mono-currency system.
