The Reserve Bank of Zimbabwe published an education and awareness update answering public questions on the ZiG currency, including its reserve backing, the rationale for maintaining a local currency, and how the Bank expects to manage physical cash availability and the rollout of upgraded banknotes. ZiG is presented as being anchored by a composite basket of foreign currency and precious metals, mainly gold, held as reserves, with the aim of restoring confidence in the local currency and safeguarding the multi-currency system. The update links the need for a local currency to monetary policy independence and the ability to deploy instruments such as interest rate adjustments. It also attributes limited physical ZiG circulation, especially in remote areas, to the lack of ZiG accounts and notes that urban and peri-urban use of cash is low due to preference for electronic payments; physical banknote availability is expected to increase in line with inflation objectives and demand for money. The upgraded family of ZiG notes is described as being swapped for existing electronic balances held by banks at the Reserve Bank, with cash injection stated to be demand-driven; the Bank also points to ongoing foreign reserve accumulation to support the exchange rate and maintain full backing of local currency reserve money and total banking sector deposits. On use for essential services such as fuel and passport applications, the update notes that reserve cover was low when ZiG was introduced in April 2024 and ties broader use to reserves growing towards a recommended 3 to 6 months of import cover. For merchants refusing ZiG payments, the public is directed to report cases to the Financial Intelligence Unit, which will henceforth monitor compliance and impose penalties for non-compliance. The Reserve Bank also states that the current ZiG notes will remain legal tender and co-circulate with the Upgraded Big5ZiG banknote series after 7 April 2026.
Reserve Bank of Zimbabwe 2026-03-30
Reserve Bank of Zimbabwe publishes ZiG currency FAQs and confirms FIU monitoring of acceptance and co-circulation of notes after 7 April 2026
The Reserve Bank of Zimbabwe issued an education and awareness update on the ZiG currency, clarifying its reserve backing, the rationale for maintaining a local currency, and plans for managing physical cash availability and upgraded banknotes. ZiG is backed by a composite basket of foreign currency and precious metals, mainly gold, with cash issuance and broader use for essential services tied to demand, inflation objectives, and the build-up of foreign reserves towards 3 to 6 months of import cover. The Bank directs the public to report merchants refusing ZiG payments to the Financial Intelligence Unit for enforcement and confirms that existing ZiG notes will remain legal tender and co-circulate with the Upgraded Big5ZiG series after 7 April 2026.