New ZiG Banknotes In The Shortest Possible Time - Mushayavanhu
Reserve Bank of Zimbabwe Governor John Mushayavanhu said that the central bank is working on improving the quality and design of the ZiG banknotes to meet international standards.
However, he warned that the design and rollout of new banknotes typically takes anywhere from six months to two years in some countries. He said:
The Reserve Bank is working on enhancing the quality and design of the ZiG banknotes in line with international standards, as promised in the 6 February 2025 Monetary Policy Statement.
Empirical evidence from across jurisdictions suggests that the design and rollout of new currency notes is a specialised process that can take some time, usually ranging from a minimum of six months to two years.
In this context, the Reserve Bank is making concerted efforts to ensure the delivery of the new ZiG banknotes in the shortest possible time, considering all the critical steps involved in the design and rollout process.
Mushayavanhu also said ZiG transactions now make up about 35 percent of all settlements in the economy, up from approximately 15 percent last year. He said:
The de-dollarisation road map is crucial for restoring confidence in the local currency. The Reserve Bank believes in a gradual and market-driven approach to de-dollarisation that will ensure the country gradually and sustainably transitions to a monocurrency regime by 2030.
In this regard, gradual and incremental but notable milestones should be achieved along the way. The gradual approach will ensure that no disruptive shocks are introduced to the economy, which may result in bank runs and reversal of the anticipated gains from de-dollarisation.
As such, currency stability should underlay the de-dollarisation process. Country experiences have amply shown that sustained price stability is the single most significant precondition for successful de-dollarisation.
The ZiG currency was introduced in Zimbabwe on April 5, 2024. It replaced the Zimbabwean dollar, which had suffered from rapid depreciation.
The ZiG is backed by a mix of foreign currencies, gold, and other precious metals to help stabilize the economy.
More: The Sunday Mail
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