Redesigned ZiG Notes — A Fresh Look, but Will It Reinforce Zimbabwe’s Mono-Currency Dream?

The Reserve Bank of Zimbabwe (image source)

The Reserve Bank of Zimbabwe (RBZ) has commenced production of redesigned ZiG banknotes, offering enhanced durability and upgraded security features. This initiative is positioned as a pivotal step in the central bank’s broader de-dollarisation strategy and its ambition to transition Zimbabwe to a mono-currency system within five years.

On the surface, the redesign appears routine, using sturdier substrates, introducing advanced anti-counterfeit elements, and covering all denomination series initially planned in 2024. RBZ Governor Dr. John Mushayavanhu emphasized the importance of improved quality, reflecting guidance from the mid-term Monetary Policy Statement. Still, skeptics argue that cosmetic reforms fail to address deeper issues, like public trust, currency credibility, and structural economic instability.

The currency redesign comes at a critical juncture. The ZiG, formally launched in April 2024 as a gold and foreign reserves–backed currency, was introduced to revive faith in a local currency after repeated collapses of the Zimdollar and other iterations. Despite this, adoption has been sluggish — foreign currencies still dominate approximately 80% of transactions, and mistrust remains deeply entrenched.

Experts view the redesign as a confidence-building measure. Dr. Tinashe Mugari, a monetary policy analyst, explains: “Improved look and feel can signal determination. Durable notes reduce costs and signal long-term planning — but trust is built only through consistent governance and stable monetary policy.” The challenge lies in aligning symbolic currency reform with practical functionality and credibility.

Zimbabwe’s transition to a mono-currency system carries risk and reward. Success would consolidate monetary sovereignty and reduce reliance on volatile dollar flows. However, the lingering use of foreign currencies, black-market dynamics, and inflation fears remain formidable barriers. The strategy’s integrity depends on consistent communication from RBZ, revealing rollout timelines and calibration of supply. There is also need to avoid monetary financing and unchecked fiscal expansion and to ensure businesses and citizens can transact in ZiG without disruption.

As economist Prosper Chitambara notes, “You can redesign notes, but if every vendor still demands dollars for rent or school fees, faith won’t follow.” It remains to be seen if the general public will be more accepting of the notes.