RBZ Confirms ZiG Bank Notes Ready for Phased Release in 2026

The Reserve Bank of Zimbabwe says new ZiG bank notes are ready for phased release in early 2026 (image source)

HARARE — The Reserve Bank of Zimbabwe (RBZ) has confirmed that new ZiG bank notes are ready for circulation, with a phased rollout scheduled for the first quarter of 2026, as authorities move cautiously to reintroduce physical cash without destabilising monetary conditions.

RBZ Governor Dr John Mushayavanhu said the introduction of the notes will be gradual and demand-driven, with distribution taking place through commercial banks and other authorised channels. He stressed that the timing and scale of release will be guided by prevailing economic conditions and actual demand for physical cash. “The new ZiG notes are expected to be introduced within the first three months of 2026, and the process will be gradual and carefully aligned with economic conditions and actual cash demand,” Mushayavanhu said.

The central bank moved to allay fears of inflationary pressure, emphasising that the release of physical notes will not expand the money supply. Mushayavanhu explained that banks will obtain the cash by converting existing electronic balances held at the central bank. “This will not expand money supply because banks will obtain the cash by exchanging it for their RTGS balances at the Reserve Bank,” he said.

RBZ said macroeconomic stability is expected to continue into 2026, supported by improved foreign currency management systems and stronger domestic and external sector fundamentals. Mushayavanhu noted that price and exchange-rate stability had been maintained throughout most of 2025, helping to restore confidence in the ZiG. “Price and exchange rate stability is expected to continue, underpinned by enhanced foreign currency management systems and strong domestic and external sector fundamentals,” he said.

The ZiG is currently backed by foreign currency reserves estimated at about US$1.1 billion, providing approximately 1.2 months of import cover. According to RBZ, the accumulation of reserves has strengthened confidence in the local currency. During 2025, month-on-month ZiG inflation averaged 0.4 percent between February and November, while the exchange rate traded largely within a narrow band of ZiG26 to ZiG27 against the United States dollar.

RBZ data also shows a narrowing of the parallel market premium to below 20 percent, down from levels above 40 percent earlier in the year, reflecting improved exchange-rate discipline and market confidence.

Members of the public have welcomed the prospect of physical ZiG notes, saying cash availability would ease daily transactions, particularly in sectors where electronic payment systems remain unreliable. The central bank said it remains committed to maintaining monetary discipline and safeguarding the value of the ZiG as part of broader macroeconomic stabilisation efforts.