The Reserve Bank of Zimbabwe (RBZ) has completed the printing and minting of the new Zimbabwe Gold (ZiG) banknotes and coins, set to be released into the market next week. In an exclusive interview with The Sunday Mail, RBZ Governor Dr. John Mushayavanhu revealed that the new currency denominations, supported by a combination of gold, precious minerals, and foreign currency reserves, were produced domestically. The central bank has ensured an adequate supply of notes and coins to meet market demands.
The delay in the physical rollout of the currency was intentional, allowing for extensive public education campaigns to ensure widespread understanding and acceptance of the new currency. The ZiG notes will be gradually introduced in various denominations, ranging from ZiG1 to ZiG200, while the coins will be available in half ZiG and quarter ZiG denominations.
Dr. Mushayavanhu emphasized that the new currency had already been introduced on April 5 when the Monetary Policy Statement was announced. Zimbabwe dollar balances were automatically converted into ZiG at that time. The upcoming phase focuses on introducing physical notes and coins, which have already been printed and are ready for circulation.
To ensure a smooth transition and combat counterfeiting, the RBZ is conducting extensive educational campaigns to familiarize the public with the features of the new currency. Collaboration with the Ministry of Information, Publicity, and Broadcasting Services is underway to promote the new currency nationwide.
Dr. Mushayavanhu highlighted that ZiG is a stable currency, steadily gaining value since its introduction. Its value is strongly influenced by the price of gold, which has been on an upward trajectory. The stability of ZiG is expected to curb inflation, as measures outlined in the Monetary Policy Statement aim to maintain control over price levels. Additionally, Treasury's policy of requiring half of corporate taxes to be paid in the local currency will further drive demand for ZiG.
Experts, such as investment adviser Dr. Keen Mhlanga, commended the backing of the new currency with gold, distinguishing it from previous currencies. The connection to gold implies that as the price of gold rises, the value of ZiG will also increase. The introduction of robust mechanisms to audit the issuance of money against reserves serves as a fundamental driver of currency value.
The Zimbabwe Gold currency replaces the rapidly depreciating Zimbabwe dollar, which has struggled against major currencies since the beginning of the year. The RBZ holds reserves of US$100 million in foreign currency and 2.5 tonnes of gold, valued at US$185 million, further solidifying the backing of the ZiG currency..
