Online Reporter
Rutendo Nyeve [email protected]
THE Reserve Bank of Zimbabwe (RBZ) has attributed the slower uptake of the Zimbabwe Gold (ZiG) currency in border towns such as Beitbridge and Plumtree to their long-standing use of multiple currencies, while assuring residents that the local currency is being distributed across the country.
RBZ Deputy Governor Dr Innocent Matshe said border communities would naturally take longer to fully embrace the ZiG because of their proximity to neighbouring countries and the established use of foreign currencies in cross-border trade.
Speaking in Victoria Falls, Dr Matshe said the central bank had ensured that banks across the country received the local currency.
“I can assure you, in the areas you have talked about, the Reserve Bank has been there. There is no bank or subsidiary that did not receive local currency. It is important that ZiG be available across the whole country,” he said.
He said the situation was different in areas such as Gokwe, where the currency had gained greater traction among cotton farmers who receive ZiG as part of export retention payments.
Dr Matshe said building confidence in the local currency would take time, given that the ZiG is relatively new compared to the US dollar.
“The depreciation of value can only be taken care of by the stability that exists in the financial markets. That is something that will engender the use of the local currency,” he said.
The RBZ introduced upgraded ZiG banknotes in April 2026 as part of efforts to strengthen the local currency and improve its circulation.
Dr Matshe urged members of the public to use ZiG for everyday domestic transactions, including paying utility bills, buying groceries and paying school fees, instead of immediately converting it into US dollars.
He warned that repeatedly exchanging ZiG for US dollars and then converting the money back into ZiG could result in unnecessary losses.
Dr Matshe also reminded businesses and schools that ZiG remains a legal means of payment under Zimbabwe’s multi-currency system.
“No school or economic agent is allowed to reject ZiG payments,” he said.
He added that some fuel companies were already accepting the local currency for fuel purchases.
Dr Matshe said the pace at which ZiG would become more widely accepted would ultimately be determined by market behaviour rather than directives from the RBZ or Government.
The central bank continues to publish ZiG-related monetary and currency developments, including exchange-rate and financial-market data, as it seeks to support stability in the local currency.
