Currency Confusion Deepens As RBZ Abandons Plan To Remove US Dollar
By A Correspondent — Fresh uncertainty has emerged over Zimbabwe’s currency policy after the Reserve Bank of Zimbabwe (RBZ) effectively dropped its earlier plan to eliminate the use of the United States dollar by 2030.
The revelation came during the launch of the upgraded ZiG “Big Five” banknotes at Masvingo Polytechnic on Tuesday.
RBZ Governor John Mushayavanhu, whose remarks were delivered by the bank’s Finance Director Never Nyemudzo, confirmed that the transition to a single local currency will no longer follow a fixed timeline.
“We are gathered here to introduce the upgraded ZiG notes series, themed the Big Five banknote series,” Mushayavanhu said in the prepared speech.
The new notes — ZiG10, ZiG20, ZiG50, ZiG100 and ZiG200 — are expected to begin circulating on April 7. Existing ZiG10 and ZiG20 notes will remain in use, although banks will start issuing the upgraded versions when customers withdraw money after making deposits.
Despite the rollout, the central bank moved to clarify that the launch of the new banknotes does not mean the country will immediately abandon the multi-currency system.
“I wish to clarify that this launch does not signal an immediate or forced return to a mono-currency system,” Mushayavanhu said.
“Our transition to the exclusive use of the local currency for all domestic transactions will be conditional upon achieving specific conditions precedent.”
According to the RBZ governor, the country would only move to a mono-currency system if several economic benchmarks are achieved, including “durable macro-economic stability characterised by low and stable single-digit inflation, adequate foreign currency reserves, stable exchange rate dynamics with minimal over- or undervaluation of the ZiG, and financial sector stability.”
Mushayavanhu claimed that inflation in ZiG terms had improved significantly, saying annual inflation dropped from 95.8 percent in July 2025 to 4.1 percent in January before easing further to 3.8 percent in February.
The central bank also said the upgraded banknotes were introduced following complaints about the quality and durability of the current ZiG notes. The redesign project reportedly started in January last year and was completed in December.
RBZ officials are now conducting nationwide awareness campaigns with provincial and district authorities to educate the public about the colour, design, size and material of the new notes, while encouraging proper handling of the currency.
