By Business Reporter-The Reserve Bank of Zimbabwe (RBZ) has announced that the ZiG circulating in the country has lost its quality and they now plan to introduce a new series of higher-quality ZiG (Zimbabwe Gold) banknotes in denominations of ZiG10, ZiG20, ZiG50, ZiG100, and ZiG200.
RBZ Governor Dr. John Mushayavanhu said the rollout will be gradual and based on market demand.
“The process of procuring and producing banknotes, however, can be lengthy, and the Reserve Bank will keep the public updated on the progress,” Mushayavanhu said during a press briefing.
This latest development comes just months after the RBZ introduced the ZiG in April 2024, a gold-backed currency meant to replace the much-maligned Zimbabwean dollar (ZWL) and restore stability in a country plagued by over two decades of currency and economic turmoil.
A Troubled Past: The Currency Crisis Since 2000
Zimbabwe’s currency instability is deeply rooted in a history of poor economic management, political interference in monetary policy, and a chronic lack of confidence in the financial system.
The first major crack appeared in the early 2000s following the controversial fast-track land reform programme, which triggered capital flight, agricultural collapse, and a sharp decline in foreign currency inflows.
Hyperinflation spiraled out of control in the years that followed, culminating in the 2008 economic meltdown, where inflation reached an astronomical 89.7 sextillion percent.
The Zimbabwean dollar became worthless, forcing the government to abandon it in 2009 and adopt a multi-currency system dominated by the US dollar.
Despite the relative stability the multi-currency regime brought, government insistence on reviving a local currency saw the reintroduction of the Zimbabwean dollar in 2019 — a move that was met with deep skepticism.
Since then, the country has experienced multiple currency iterations: bond notes, RTGS dollars, and now the ZiG — all of which have struggled to gain public trust.
Cosmetic Changes vs. Structural Reforms
Currently, only ZiG10 and ZiG20 notes are in circulation, but they are in short supply and rapidly deteriorating due to poor quality.
The RBZ’s decision to issue more durable notes in higher denominations is a recognition of the shortcomings of the initial rollout.
It also reveals a tacit acknowledgment that deeper systemic issues remain unresolved.
In addition to printing new notes, the government is pursuing measures to boost ZiG usage, particularly in the informal sector.
These include mandating point-of-sale (POS) machines for all businesses and requiring a portion of tax payments to be made in local currency.
While such measures may increase transactional demand for ZiG, economists argue that they amount to coercion rather than confidence-building. Without addressing underlying issues — such as fiscal indiscipline, corruption, and lack of production — these interventions are unlikely to yield sustainable results.
The Real Panacea: Sound Economic Policies
History has shown that no currency — regardless of how it is backed or branded — can succeed in the absence of robust economic fundamentals. What Zimbabwe needs is not just new notes, but a comprehensive policy framework that fosters investor confidence, ensures monetary independence, promotes industrial productivity, and respects property rights.
Economic stability is not achieved through currency rebranding but through credible leadership, policy consistency, and institutional reform. Until these fundamentals are addressed, the new ZiG notes may simply follow the fate of their predecessors: born with fanfare, and buried by inflation.