The Reserve Bank of Zimbabwe (RBZ) is considering the introduction of higher denomination ZiG notes to facilitate smoother cash transactions.
RBZ Governor John Mushayavanhu told <a href="https://www.sundaymail.co.zw/zig-firms-as-rbz-reserves-shoot-to-us533m">The Sunday Mail</a> that the volume of new notes set will be drip-fed into the market to align with projected economic activity, ensuring market stability. Said Mushayavanhu:
<blockquote>
Plans to introduce higher denominations are underway and the amount to be introduced will be optimal and consistent with the envisaged economic activity.
Going forward, the Reserve Bank expects to progressively increase the proportion of cash to total deposits to 5 percent, which is close to countries with similar economic structures in the region.
Given the current money market position, the Reserve Bank is committed to maintaining the value of the ZiG and implementing measures that will preserve its transactional and store-of-value functions and support the de-dollarisation journey.
The RBZ will progressively increase the amount of ZiG in circulation to optimal levels, consistent with anticipated broad money growth supportive of economic activity.
The RBZ will ensure that the increase in local currency is fully covered by foreign reserves (gold, other precious metals and nostro balances), at all times, and in line with the foreign reserves accumulation strategy.
</blockquote>
While the RBZ asserts that the ZiG has stabilized, trading at just over ZiG26 per US$1 on Monday, January 13, the street rate remains around ZiG40 per US$1.
Additionally, formal retail outlets have moved away from using the fixed official rate. When they do, they tend to inflate prices in USD to protect themselves from potential losses.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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The Reserve Bank of Zimbabwe wants to make it easier to use money by introducing higher denomination notes. The amount of new money introduced will depend on the economy, to keep things stable. They plan to increase the amount of cash in circulation gradually. The value of the local currency (ZiG) needs to be protected, and the RBZ will make sure there's enough foreign reserves to back it up. The ZiG is doing better but the street rate is still different. Stores are moving away from using official rates and some are raising prices in USD.

RBZ Plans To Introduce Higher Denomination ZiG Notes

Police have confirmed the arrest of two Salvation Army Church pastors in Kadoma for tearing $50 Zimbabwe dollar banknotes during a church service.
In a post on the Zimbabwe Republic Police (ZRP) Twitter page, police said Felix Tengemhare (62) a Major in the church, and his wife Benina Tengemhare, who is a Captain, tore nineteen (19) ZWL$50 during the service leading to their arrest. Police said:
<blockquote>
Police in Kadoma have arrested the head and Major of Salvation Army in Rimuka, Felix Tengemhare (62) and his wife, Benina Tengemhare, who is a Captain in the church, for tearing nineteen ZWL$50 notes during a church service on 08/01/23.
</blockquote>
Police, however, have not revealed why the clerics ripped the banknotes in church.
According to Section 42 of the Reserve Bank Act Chapter 22:15, “Any person who… wilfully defaces, soils or damages any banknote or writes or places any drawing thereon or attaches thereto anything in the nature of an advertisement… shall be guilty of an offence…”.
Anyone found guilty is liable to imprisonment for a period not exceeding seven years.

Salvation Army Church Pastors Tear $50 Banknotes During Service

Reports indicating that the Reserve Bank of Zimbabwe (RBZ) will soon introduce higher denominations of banknotes have sparked debate with some commentators in support of the move while others remain unconvinced of the merits of such a move.
Reports over the weekend claimed that the RBZ will introduce into circulation new $50, $100 and $200 banknotes this year.
Affirmative Action Group Matabeleland chapter president Reginald Shoko told NewsDay that the introduction of higher dominations will ease cash shortages and ideally, the largest denomination must be equivalent to US$20, roughly ZWL$2 000.
While acknowledging that the introduction of bigger denominations could be a good move, Consumer Council of Zimbabwe (CCZ) regional manager for Bulawayo, Comfort Muchekedza, said banknotes could spread the coronavirus to all corners of the country. He said:
<blockquote>With the increased cases of coronavirus, banknotes are also mediums of transmission; they easily exchange hands and move so fast to all corners of the country.</blockquote>
National Consumer Rights Association advocacy advisor Effie Ncube said higher denominations may drive up inflation. Said Ncube:
<blockquote>On the negative side, it may drive up inflation because each time you add new money into the market you drive up inflationary pressures or prices. We may see a lot of prices of different commodities going up.</blockquote>
Zimbabwe’s highest denomination currently is the $20 banknote which is roughly equivalent to US$0.25 and informal traders are now using Zimbabwe dollars as change while transacting in US dollars.
<h4>More: <a href="https://www.newsday.co.zw/2021/01/higher-denominations-could-trigger-inflation/" rel="noopener noreferrer" target="_blank">NewsDay</a></h4>

'RBZ Should Introduce $2 000 Banknote'

The <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe" rel="noopener noreferrer" target="_blank">Reserve Bank of Zimbabwe (RBZ)</a> said that new banks notes will be printed outside the country and drip-fed into the economy “soon”, to end the current liquidity crunch.
The Central Bank’s director for finance and markets, William Manimanzi, revealed this on Wednesday when he appeared before the Budget and Finance Portfolio Committee to speak on the 2020 National Budget. He said:
<blockquote>… what is happening is that new notes will be available soon so that they meet the required cash demands. Obviously, these notes are going to be printed outside the country and this requires foreign exchange.
That is all I can say at the moment — but maybe in a few months — I do not know exactly when, but those new notes will be available.</blockquote>
There has been a cash crisis in Zimbabwe for the past three years since the surrogate <a href="https://www.pindula.co.zw/Zimbabwe_Bond_Notes" rel="noopener noreferrer" target="_blank">bond notes</a> were introduced in 2016.
As a result, the few notes available are now being “sold” to the transacting public since some service providers accept cash only.
<h4>More: <a href="https://www.newsday.co.zw/2019/10/new-notes-being-printed/" rel="noopener noreferrer" target="_blank">NewsDay</a></h4>

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