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.
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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

The Reserve Bank of Zimbabwe (RBZ) has launched “Swipe for ZiG Cash” in partnership with Homelink to address the shortage of small change.
In a statement issued this Tuesday, 04 June, central bank Governor John Mushayavanhu said the transacting public should visit their nearest Homelink branch and swipe for ZiG cash using their local currency debit/credit cards with effect from Monday 10 June 2024. Reads the statement:
<blockquote>
The Reserve Bank of Zimbabwe is committed to ensuring sufficient local currency, ZiG circulation in the economy as necessary to support normal business transactions and economic activity.
Pursuant to the above and for the convenience of the transacting public, the Bank wishes to advise the public, of an arrangement with Homelink to widen access to ZiG cash, leveraging on its existing branch network.
The Bank particularly seeks to expand economy-wide availability of small change in the following denominations, ZiG1, ZiG2, ZiG5, ZiG10.
The Bank appeals to all individuals, commuters, public transport operators, retailers, informal traders and their associations, vendor associations and other key stakeholders which interface with the transacting public, to approach their nearest Homelink branch and swipe for ZiG cash using their local currency debit/credit cards with effect from Monday 10 June 2024.
The exchange of foreign currency cash for ZiG cash can also be made at these Homelink branches at the ruling interbank exchange rate.
This arrangement with Homelink is part of wider initiatives by the Bank to ensure the availability of adequate ZIG cash in the economy. Going forward, the initiative will be expanded to other bureau de changes.
The list of Homelink branches across the country is attached for ease of access.
</blockquote>
List of Homelink Branches
<ul>
<li>Bulawayo – Call Centre (Bulawayo), Federal Building 103a Federal centre, 10th and fort street</li>
<li>Bulawayo – Fife Street, Beverly Building 16 Beverly Place, Cnr Five Street and 10th Ave</li>
<li>Chitungwiza – Chitungwiza, Makoni shopping centre 32045 Unit G. Seke</li>
<li>Gweru – First Mutual Centre Gweru, Shop number 8a, First Mutual Centre, corner Fifth Street and R.G. Mugabe Way</li>
<li>Harare – FEPC, Hardwick House 72 Samora Machel Ave, Harare</li>
<li>Harare – Call Centre (Harare), Hardwick House 72 Samora Machel Ave, Harare</li>
<li>Harare – Machipisa, 5 Samuriwo Building, Machipisa</li>
<li>Harare – OK Kwame Nkruma, Kwame Nkrumah Avenue</li>
<li>Harare – Avondale, Shop 1, Shamrock Building 30 King George Rd</li>
<li>Harare – NocZim House Branch, 100 Leopold Takawira, NocZim House, Harare</li>
<li>Kwekwe – OK Kwekwe, R. Mugabe Way Kwekwe, Kwekwe</li>
<li>Mutare – Manica Chambers, 92 Manica Complex, Main Street and 2nd Avenue</li>
<li>Rusape – Panmart, 301 Manda Street and Chimurenga Street</li>
</ul>
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