RBZ begins production of redesigned ZiG banknotes
The Reserve Bank of Zimbabwe (RBZ) has started producing redesigned ZiG banknotes, which will soon enter circulation as part of the central bank’s de-dollarisation plan aimed at achieving a mono-currency regime within five years.
The new series will feature enhanced security elements to reduce counterfeiting, while improvements in paper quality and durability are expected to make the notes more resistant to wear and tear.
Many Zimbabweans had raised concerns that the current notes deteriorate quickly, with fraying, fading and general damage making them difficult to use in everyday transactions. Banks and retailers also complained about the costs of handling worn notes, which prompted calls for higher quality replacements.
At present, only the ZiG10 and ZiG20 notes are in circulation. The redesigned notes will cover the full range of denominations that were announced when the ZiG currency was launched in April last year.
RBZ Governor Dr John Mushayavanhu confirmed that the work on the new notes was well advanced.
“The Reserve Bank is working on the modernisation of the ZiG banknote series as advised in the recent mid-term Monetary Policy Statement,” he said.
“The new ZiG banknotes will be re-designed including improved quality and durability for the convenience of the transacting public. In this regard, the production process of the improved banknotes has progressed well and is at an advanced stage. The public will be advised of the expected roll-out at the appropriate time.”
The central bank noted that redesigning banknotes is standard practice worldwide as it helps prevent counterfeiting and extends the lifespan of currency. The development comes as the use of the local currency continues to rise, with the ZiG now accounting for more than 35 percent of all transactions, up from 15 percent recorded last year.
Authorities say price stability has also been maintained. Since October, the cost of basic goods has largely remained unchanged. In March, food inflation was recorded at minus 0,5 percent, while non-food inflation stood at 0,2 percent. The RBZ has said this stability is creating a foundation for a sustainable mono-currency system.
Dr Mushayavanhu also revealed that the central bank is building foreign currency reserves to strengthen the ZiG.
“The Reserve Bank is strategically accumulating foreign currency reserves to support the transition to mono-currency and to ensure sustainability of the local currency. In this regard, the build-up of foreign currency reserves is just one of the preconditions for successful transition to mono-currency,” he said.
The ZiG, which replaced the Zimbabwe dollar in April 2024, was launched with assurances that gold and foreign currency reserves would back the unit to restore public trust.
Dr Mushayavanhu stressed that the redesigned notes should not be mistaken for a new currency.
“I must reiterate that the Reserve Bank is not going to issue a new currency, and in this regard, the public should not be apprehensive,” he said. “Instead, the Reserve Bank is merely redesigning the current banknotes to enhance quality in line with international standards.”
Economist and RBZ Monetary Policy Committee member Mr Persistence Gwanyanya said the move was a step towards reinforcing confidence in the ZiG.
“All this can be construed as measures to restore confidence in the country’s currency and answering a call to introduce better quality notes,” he said. “It also reflects on the policy maker’s attitude towards the currency. It is also a reflection of the authorities’ seriousness in the local currency’s stability and supporting its permanency.”
