The Reserve Bank of Zimbabwe (RBZ) has entered the final phase of mobilizing physical cash for the Zimbabwe Gold (ZiG) currency, with a rollout scheduled to begin within the first three months of 2026. This move follows a period of digital-first circulation and is intended to provide critical transactional convenience for the public. By pacing the release throughout the first quarter of next year, the central bank aims to manage liquidity without disrupting the macroeconomic stability achieved over the past year.
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Currency Rollout: Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu confirms new ZiG notes are ready for distribution through banks.
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Strategic Release: The rollout will be gradual and systematic, scheduled to begin within the first three months of 2026.
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Money Supply Control: The injection of physical cash will not increase money supply; banks will exchange electronic balances for physical notes.
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Reserve Growth: Zimbabwe’s foreign reserves have reached US$1.1 billion, providing approximately 1.2 months of import cover.
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Stability Targets: The RBZ aims for single-digit annual inflation by the first quarter of 2026, building on a stable 2025 exchange rate.
The Reserve Bank of Zimbabwe has finalized preparations for the delivery of new ZiG banknotes, marking a significant step in the evolution of the gold-backed currency. Governor Dr. John Mushayavanhu stated that the central bank is now in an advanced state of readiness, with the notes set to move through financial institutions and authorized channels. The rollout is designed to be “gradual and systematic,” ensuring that the introduction of physical cash is strictly aligned with genuine transaction demand and broader economic developments.
Crucially, the central bank has emphasized that this move will not trigger inflationary pressures. The mechanism for distribution involves commercial banks exchanging their existing electronic RTGS balances for the new physical ZiG notes, ensuring the total money supply remains constant. This technical approach is intended to maintain the “price and exchange rate stability” observed throughout 2025, where month-on-month inflation averaged 0.4 percent and the parallel market premium remained below 20 percent.
The governor’s optimistic outlook for 2026 is supported by a significant increase in national reserves, which grew from US$276 million in April 2024 to US$1.1 billion by mid-December 2025. These reserves, comprising gold, precious minerals, and foreign currency, now cover more than five times the ZiG component of reserve money. As Zimbabwe transitions toward a mono-currency system, the RBZ remains committed to achieving SADC macroeconomic convergence criteria, targeting an inflation range of 5-7 percent by 2029.
Timeline: Recent Monetary Developments
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December 15, 2025: Foreign currency reserves confirmed at US$1.1 billion.
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December 28, 2025: RBZ officially announces readiness of new ZiG notes for delivery.
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Q1 2026 (Projected): Commencement of the gradual, systematic rollout of physical notes to the public.
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Q1 2026 (Target): Goal to achieve single-digit annual inflation.
Key Players
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Dr. John Mushayavanhu: Governor of the Reserve Bank of Zimbabwe (RBZ).
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Reserve Bank of Zimbabwe (RBZ): The central monetary authority managing the ZiG rollout.
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Financial Institutions: Commercial banks designated as the primary channels for note distribution.
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The Sunday Mail: The primary source for the Governor’s official policy interview.
The ZiG, or Zimbabwe Gold, was officially launched on April 5, 2024, as the nation’s sixth attempt since 2008 to establish a functional local currency. It replaced the heavily depreciated Zimbabwe Dollar (ZWL) at an initial conversion rate of 13.56 ZiG per US Dollar. Unlike its predecessors, the ZiG is a “structured currency” backed by a composite basket of assets, including 2.5 tonnes of gold and US$100 million in foreign currency reserves. Its introduction was a response to extreme volatility that saw the old ZWL lose over 80% of its value in early 2024 alone. While it faced an initial devaluation in late 2024, the currency has since been supported by an aggressive reserve accumulation strategy.
