Online Reporter
Samuel Kadungure
News Editor
THE Reserve Bank of Zimbabwe (RBZ) is pressing ahead with its plan to establish a mono-currency system anchored on the local unit, ZiG, for all domestic transactions.
While individuals and corporates will still be permitted to hold US dollar accounts, and foreign currency loans will continue to be repaid in the borrowed currency, the central thrust is to consolidate the use of ZiG in everyday trade.
Announcing the measures in Mutare on Wednesday during a provincial Monetary Policy Presentation, RBZ Governor, Dr John Mushayavanhu, also unveiled sweeping changes to banking fees and charges.
From April 1, 2026, cash withdrawal fees at banks and ATMs will be capped at two percent of the withdrawn amount, while Point-of-Sale (POS) charges will be limited to 1,5 percent of the transaction value, with a maximum ceiling of US$20 or the ZiG equivalent.
The presentation doubled as the launch of the Central Bank’s campaign in Manicaland to promote the new ZiG notes and entrench their use in the economy.
Dr Mushayavanhu said the redesigned “Big Five” notes — ZiG10, ZiG20, ZiG50, ZiG100 and ZiG200 — have been upgraded with modern security features and cultural elements to reflect Zimbabwe’s identity.
The first batch of ZiG10, ZiG20 and ZiG50 notes will be released tomorrow (Saturday), with ZiG100 and ZiG200 to follow later.
These notes will co-circulate with existing ZiG denominations and are designed to be more durable and resistant to counterfeiting.
In addition, the RBZ is relaunching ZiG coins to ease the shortage of small denominations, a gap that has long caused pricing distortions and rounding challenges in the retail sector.
The measures, Dr Mushayavanhu emphasised, are part of a broader effort to stabilize prices, strengthen the currency, and maintain exchange rate stability.
“The Reserve Bank of Zimbabwe is working on implementing a mono-currency system, where domestic transactions will be done in local currency, ZiG. This means that when the system is in place, businesses will only accept ZiG for local transactions, but you can still keep your US dollar accounts. If you want to make a purchase, you will need to exchange your US dollars for ZiG at a bureau-de-change. When it comes to loans, if you borrow in US dollars, you will still be expected to repay in US dollars, even when the mono-currency system is implemented. However, you can choose to repay in ZiG equivalent if the bank agrees. The Central Bank is also tightening regulations on loan issuance, requiring institutions to have bank backing for loans to prevent misuse of funds.
“Zimbabwe is making progress towards a mono-currency system, but it is not quite there yet. The country has achieved single-digit inflation, with 4,1 percent in January and 3,8 percent in February 2026, and has a stable economic environment, and sustainability is key to achieve this milestone.
“To go mono-currency, we need to meet certain conditions, including having foreign currency reserves covering at least three to six months of imports. Currently, we are at 1,5 months, and are accumulating reserves at a steady rate, aiming to reach the target by 2028,” said Dr Mushayavanhu.
The RBZ has adjusted cash withdrawal limits to improve transactional convenience – and individuals can now withdraw up to ZiG10 000 per week, while corporates can withdraw up to ZiG100 000, and has implemented changes to protect consumers and enhance financial security by scrapping cash deposit fees and bank card renewal charges.
“Transactions below US$5 will incur no charges. You can now check your account balance without incurring any charges, and fees on cash deposits for both ZiG and US dollars have been scrapped. This is a big relief for customers who were previously being charged for these services.
“Cash deposit fees and bank card renewal charges have been scrapped, with banks only allowed to charge the actual cost of producing the card. To combat fraud in mobile money transaction, mobile network operators are required to clean up their databases and link every line and wallet to a valid national identity card by June 30, 2026. This seeks to prevent money laundering and ensure users’ funds are secure,” said Dr Mushayavanhu.
Dr Mushayavanhu said RBZ has paid out ZiG600 million so far, with plans to reach ZiG1,2 billion, offering loans at below-policy rates to support productive sectors.
“The goal is to increase confidence in the local currency, reduce reliance on foreign currencies, and promote economic stability. The banknotes will be introduced in phases, starting with ZiG10, ZiG20, and ZiG50 denominations, followed by higher denominations. To make the currency more accessible, cash withdrawal limits have been increased to ZiG10 000 per week for individuals and ZiG100 000 per week for corporates. The new notes will circulate alongside existing ZiG notes, and banks are required to accept both old and new notes.
“The paper used for the new ZiG notes is 100 percent cotton substitute, making it durable and resistant to wear and tear. The notes are designed to withstand handling, reduce counterfeiting, and inspire trust in transactions. The new ZiG notes feature the Big Five animals and incorporate state-of-the-art anti-counterfeiting elements. The new ZiG banknotes have advanced security features, including intaglio printing, which creates raised prints that can be felt when touched,” said Dr Mushayavanhu.
Minister of State for Manicaland Provincial Affairs and Devolution, Advocate Mischeck Mugadza implored citizens to take the campaigns seriously, saying they were designed to build trust and protect the public from misinformation.
“Its introduction and strengthening are integral to the aspirations of our National Development Strategy (NDS2), which emphasise micro- and macroeconomic stability, financial inclusion and sustainable growth anchored on the use of our own currency. For Manicaland, the significance of the ZiG is profound; our province is home to diversified economic activities in agriculture, mining, tourism, manufacturing, and cross-border trading, and an available local currency enhances business confidence, reduces transactional uncertainties, promotes formalisation and strengthens value chains across our districts,” said Minister Mugadza.
