Online Reporter
……. New open market operations instrument aims to establish yield curve and promote ZiG as store of value
The Reserve Bank of Zimbabwe (RBZ) has unveiled a new 90-day term deposit facility bill denominated in Zimbabwe Gold (ZiG), as part of efforts to deepen the local currency market and provide investors with a credible store of value.
The ZiG Denominated Term Deposit Facility Bill (ZiGDTDF), worth ZiG 500 million, will open for subscription on Monday 1 June 2026 and close on Wednesday 3 June 2026, with settlement scheduled for Thursday 4 June 2026. The instrument is priced via open tender and is targeted at banks, building societies, deposit-taking microfinance institutions, the Post Office Savings Bank, corporates and individuals.
Banks face a minimum subscription threshold of ZiG 10 million, while corporates must subscribe at least ZiG 1 million. The minimum for individuals has been set at ZiG 500,000.
The bill carries prescribed asset status and liquid asset status, making it attractive to institutional investors who are required to hold certain proportions of their portfolios in such instruments. It is also acceptable as collateral for accommodation from the central bank and is tradable before maturity.
RBZ Governor Dr John Mushayavanhu said the instrument, first signalled in the February 2026 Monetary Policy Statement, was designed to complement the existing Negotiable Certificates of Deposit (NNCD) open market operations toolkit.
“This is the OMO instrument we announced in the February Monetary Policy Statement. It will complement the NNCD,” Dr Mushayavanhu said.
He outlined three core objectives for the new facility. First, he said, it is meant “to enable economic agents to begin to use ZiG as a store of value”, noting that despite the RBZ having prescribed interest rates for savings and time deposits to banks, “we are not seeing much traction on the part of banks”.
Second, the central bank needs “to start the process of defining a yield curve” for the ZiG, a critical step in developing a functioning domestic bond market and enabling longer-term pricing of credit.
Third, Dr Mushayavanhu said the instrument would “assist in controlling reserve money by mopping up excess liquidity”, although he added that “this is not an issue at the moment”. The facility will run alongside the existing NNCD OMO instrument.
The RBZ has reserved the right to accept or reject a portion of any or all tenders. The prospectus and application forms are available on the central bank’s website.
Analysts view the move as a significant step towards building institutional confidence in the ZiG, which remains under pressure lingering dollarisation in the broader economy. Whether the 90-day paper attracts sufficient demand at market-determined yields will be closely watched when the tender closes on Wednesday.
