RBZ Announces Plan To Print More ZiG Notes – Eduzim News

By A Correspondent

The Reserve Bank of Zimbabwe (RBZ) is considering the introduction of higher denomination ZiG notes to facilitate smoother cash transactions amid ongoing economic challenges.

RBZ Governor John Mushayavanhu explained to The Sunday Mail that the new notes would be gradually introduced to align with projected economic activity, ensuring market stability. He stated, “Plans to introduce higher denominations are underway, and the amount to be introduced will be optimal and consistent with the envisaged economic activity.”

In the future, the RBZ aims to gradually increase the proportion of cash relative to total deposits to 5 percent, a target similar to that of other countries with comparable economic structures. “The Reserve Bank expects to progressively increase the proportion of cash to total deposits to 5 percent, which is close to countries with similar economic structures in the region,” Mushayavanhu added.

The RBZ emphasized its commitment to maintaining the value of the ZiG currency, preserving its role as both a transactional and store-of-value medium, while supporting the country’s de-dollarization efforts. “The Reserve Bank is committed to maintaining the value of the ZiG and implementing measures that will preserve its transactional and store-of-value functions and support the de-dollarisation journey,” Mushayavanhu noted.

To ensure the stability of the local currency, the RBZ will gradually increase the amount of ZiG in circulation to levels that align with anticipated broad money growth and economic activity. Additionally, the central bank will ensure that the increase in local currency is fully backed by foreign reserves, including gold, other precious metals, and nostro balances. “The RBZ will ensure that the increase in local currency is fully covered by foreign reserves (gold, other precious metals, and nostro balances), at all times, and in line with the foreign reserves accumulation strategy,” the Governor explained.

While the RBZ maintains that the ZiG has stabilized, trading at just over ZiG26 per US$1 on Monday, January 13, the street rate remains significantly higher, hovering around ZiG40 per US$1.

Related