Online Reporter
Samuel Kadungure
Mutare Bureau
RESERVE Bank of Zimbabwe Governor Dr John Mushayavanhu yesterday launched a campaign in Manicaland Province to promote the upgraded Big Five notes and encourage the use of the domestic currency, ZiG, in a bid to stabilise prices, currency, and exchange rates.
Speaking at the event, Dr Mushayavanhu highlighted economic progress since the introduction of ZiG, citing a decline in annual inflation from 95.8 percent in July 2025 to 4.1 percent in January 2026.
He also emphasised that the economy is nearing conditions ripe for an exclusive local currency transition.
“The decline in annual local currency inflation to single-digit levels is a significant milestone that has been achieved for the first time in over 30 years. Importantly, the low inflation rate is a critical condition precedent for safeguarding the stability of the domestic currency. Going forward, annual ZiG inflation is expected to remain within single-digit levels, benefiting from prudent monetary policy measures and complementary fiscal policy. The prevailing monetary and financial conditions have significantly boosted confidence in the ZiG currency as a unit of account, store of value and medium of exchange. Reflecting declining concerns related to the erosion of purchasing power, economic agents are now keeping ZiG deposits in bank accounts for longer periods. In this regard, the proportion of ZiG usage in the National Payment Systems (NPS) significantly increased to a peak of 43 percent in May 2025 and averaged between 35 – 40 percent for the greater part of 2025. The exchange rate has also remained largely stable, predictable and oscillating between ZiG25-27 per US$, since the once-off market-driven adjustment in September 2024. This stability has been anchored by prudent monetary policy management through effective money supply control and strong foreign currency reserves backing, thereby boosting market confidence,” said Dr Mushayavanhu, further highlighting the importance of introducing reconfigured big five ZiG banknotes.
“Why do we need redesigned notes? In the past, we used to have inflation, very high inflation, and each time we printed a new note, it would increase in value by the next week. But we have seen continuous stability over the past year and a half. The country is now ripe for us to have a currency that is durable and looks like other currencies with stability. We have managed to reduce inflation from over 95 percent in July 2025 to single-digit levels of 4.1 percent in January and 3.8 percent in February. Yes, we might see a bit of change, a few prices are going to increase arising from the conflict in the Middle East, but we are determined to maintain inflation at a single-digit level. We have also seen continuous stability in the exchange rate, and those who might have attempted to go on the parallel market, I do not know for what reason, would find that the parallel market rate is almost converging with the official exchange rate. We have a situation where if you buy bread on January 1, 2026, for around ZiG32, and on February 1, 2026, it is still around ZiG32 or even ZiG31. This is what we have always wanted, and this is what we have achieved since we launched a new structured currency in 2024,” he said.
Dr Mushayavanhu said when the ZiG was introduced, the amount in circulation was less than 20 percent of total transactions, which has since risen to around 40 percent, meaning the currency is gaining traction.
“We have also ensured stability in the banking sector. I do not think you have heard of any bank closures — there is nothing like that. The relationship between the central bank and the Ministry of Finance is at an all-time high. One of the reasons you end up with hyperinflation is when there is no coordination between the treasury and the central bank,” 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.
“The ZiG currency is not merely a medium of exchange, but it is a symbol of our sovereignty, economic discipline and national confidence. Its introduction and strengthening are integral to the aspirations of our National Development Strategy (NDS) 2, which emphasises 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.
Bongani Ndlovu