THE Reserve Bank of Zimbabwe (RBZ) has reported a huge 14 percentage point increase in ZiG (Zimbabwe Gold) usage to 40% until June since its release, amid lingering concerns over accessibility, cash distribution and market trust.
Since the introduction of the ZiG on April 5, 2024, its value has remained volatile.
Consequently, owing to the bank continuing to control the exchange rate and enforcing a hawkish policy stance, the ZiG has managed to maintain somewhat stability in the market.
However, the market still overwhelmingly prefers the greenback over the domestic tender.
“Stakeholders also urged the Reserve Bank to implement additional measures to increase acceptance and uptake of ZiG in the market,” RBZ governor John Mushayavanhu said yesterday in the newly released 2025 Mid-Term Monetary Policy Statement.
“The improved macroeconomic stability has seen increased usage of ZiG as reflected by the rise in the proportion of electronic ZiG in the National Payments System from 26% in April 2024 to over 40% in June 2025.”
He said the increase in the usage of ZiG had also been accompanied by an increase in the demand for ZiG cash.
“The Reserve Bank has been ensuring issuance of ZiG in line with optimal requirements in the market. In this regard, the Reserve Bank has been working with banking institutions to ensure that at least 3% of their ZiG deposits (regional optimal benchmark for cash-in-circulation against deposits) are held and available for distribution as cash,” Mushayavanhu said.
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“To enhance distribution of ZiG cash, the Reserve Bank has directed banking institutions to increase access of ZiG through automated teller machines (ATMs) and banking halls.
“The Reserve Bank will ensure that banking institutions that have not already started distributing ZiG cash through ATMs have done so by the end of September 2025.
“Currently, the banking sector is holding in their vaults a total of over ZiG200 million in cash awaiting distribution to banking clients in need.”
As advised in the February 2025 Monetary Policy Statement, the RBZ is working to modernise the current ZiG banknotes.
“The Reserve Bank further advises that the re-design and production process of the improved ZiG banknotes is progressing very well and is at an advanced stage,” Mushayavanhu said.
“The public will be advised of the expected roll-out at the appropriate time.”
Efforts by the central bank to maintain the value of the ZiG and increase its usage come as this currency has a direct impact on inflation.
The RBZ plans to abandon the multicurrency regime by 2030, for only ZiG usage, which the central bank confirmed.
“The need for a clear de-dollarisation roadmap was one of the most prominent issues that came out during the Mid-Term Monetary Policy Review stakeholder consultations,” Mushayavanhu said.
He said specifically, the stakeholders had raised concerns that all contracts in US dollars, including bank loans, were now capped or limited to 2030.
“Stakeholders also relayed fears and concerns pertaining to the fate of their foreign currency deposits at the end of the multicurrency system in 2030,” Mushayavanhu said.
“The de-dollarisation roadmap will be crystalised in the National Development Strategy II and the Reserve Bank which is chairing the NDS2 Thematic Working Group on Macroeconomic Stability and Financial Deepening (MESFIND) is currently seized with consultations on the issue.
“The roadmap will undoubtedly encapsulate the need to maintain the current stability, preserve the foreign currency accounts and the existing USD denominated contracts.”
He said consideration would always be made to ensure that there was business continuity and certainty.
