RBZ Prints Higher Useless ZiG Denominations 
14 January 2025
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By Business Reporter-The Reserve Bank of Zimbabwe (RBZ) has announced plans to print higher denominations of the troubled ZiG currency to stabilise the economy and address cash shortages.

However, the move has been met with scepticism, with economists warning it may once again exacerbate inflation and further erode public confidence.

Printing money is not a new tactic for Zimbabwe. 

The country’s monetary history since 2003 is littered with failed attempts to stabilise its currency through higher denominations, often leading to hyperinflation and economic turmoil.

In an interview with the state media RBZ Governor John Mushayavanhu revealed that the central bank is considering introducing higher denomination notes of the ZiG to facilitate cash transactions.

“Plans to introduce higher denominations are underway, and the amount to be introduced will be optimal and consistent with the envisaged economic activity,” Mushayavanhu said. He added that the RBZ aims to increase the proportion of cash to total deposits to 5 percent, aligning with regional benchmarks.

Zimbabwe’s currency woes date back to the early 2000s:

  • 2003–2009: The Zimbabwean Dollar (Z$)
  • Hyperinflation reached a staggering 89.7 sextillion per cent in November 2008, leading to the abandonment of the Z$ in favour of foreign currencies.
  • 2009–2016: Multi-Currency System
  • The use of foreign currencies, particularly the US dollar, temporarily stabilised the economy.
  • 2016–2019: Bond Notes and Coins
  • Introduced as a local surrogate for the US dollar, bond notes quickly lost value, leading to public protests and mistrust.
  • 2019–2024: RTGS Dollar and Reintroduction of the Zimbabwe Dollar (ZWL)
  • The government’s decision to reintroduce a local currency under the guise of “monetary sovereignty” resulted in rapid devaluation and the return of inflation.
  • 2024: The ZiG Currency
  • Launched in April 2024, the ZiG was touted as a stable solution. However, within months, it has drastically collapsed.

Today, the ZiG is officially trading at US$1: ZiG24, while the parallel market rate exceeds ZiG50 to the dollar, reflecting a lack of faith in the currency.

Economists argue that Zimbabwe’s currency crisis stems from deeper structural issues. 

Printing higher denominations may offer short-term relief, but it does not address underlying economic fundamentals.

The government must focus on boosting investor confidence by eliminating unfavourable policies, tackling corruption, and fostering a stable economic environment.

Without these critical reforms, Zimbabwe risks repeating the same monetary policy failures that have haunted its economy for decades.