New ZiG20 notes out

Debra Matabvu

BANKS will begin dispensing the new ZiG20 notes tomorrow, with the Reserve Bank of Zimbabwe (RBZ) saying it is satisfied with the amount of cash it has injected into the market since the launch of the structured currency last month.

RBZ Governor Dr John Mushayavanhu told The Sunday Mail that the amount of cash they release into the market is determined by requests made by financial institutions to the central bank.

To date, the RBZ has released ZiG notes and coins in denominations of ZiG1 up to ZiG10. Introduction of the ZiG20 note is expected to expand the range of denominations in the market to meet growing needs.

“On Monday, May 13, 2024, banks will start issuing to the public the ZiG20 note,” said Dr Mushayavanhu.

“In line with this (drip-feeding) strategy, the total ZiG notes and coins already injected into circulation is currently more than three times the total amount of the old Zimbabwe dollar notes and coins in circulation at the time of conversion on April 5, 2024. The Reserve Bank is satisfied that the current trend of injections of ZiG is adequate to meet the current demand for ZiG, taking into account the cash orders from banking institutions.”

The Reserve Bank, he added, is, however, closely monitoring the uptake and distribution of notes and coins by banks to the transacting public.

“As you may be aware, the Reserve Bank distributes cash through banks in exchange for their electronic balances held at the central bank. “In this regard, the Reserve Bank gauges the demand for currency in the economy through cash orders placed by banks and financial institutions.

“It is also important to acknowledge that, as a country, we have advanced so much in terms of promoting a cash-lite society through increased usage of digital payment platforms such as mobile money, e-wallets, internet banking, point-of-sale cards, and others.”

The central bank, he added, does not intend to reverse these gains, “particularly in a digitalising world economy that we are part of”.