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.
“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. Newsday
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