Zimbabwe banks want new money notes ready fast, said Dr. John Mushayavanhu from the national bank yesterday. He explained that making fresh paper money takes between six months and two years across most countries. The bank team works hard behind the scenes to speed everything up without cutting corners. They promised better money designs during their big money report back in February. ZiG money reached its first birthday yesterday since people started using it throughout the country.
Money experts feel happy about less dollar use because ZiG stayed strong all year long. Local shops have kept prices steady since last October thanks to smart government rules. Most basic items cost the same for many months running. The central bank chief believes Zimbabwe can eventually use just one money type by 2030 if they keep moving carefully forward. Right this minute, about 35 percent of all buying happens with ZiG instead of dollars - much higher than last year when only 15 percent used local money.
Food actually became slightly cheaper with negative inflation last month. Other things went up by tiny amounts—less than one percent overall. Dr. Mushayavanhu explained that they must move step-by-step toward full ZiG use. Rushing creates panic, and people might run to banks, wanting all their savings at once. Many other countries tried changing money systems quickly and failed badly. The central bank learned these lessons well and plans very careful small steps instead.
Price stability matters more than anything else when building trust in local money. Banks watch the money supply extremely closely to prevent any surprise jumps. Rental prices caused a small bump earlier this year but quickly settled down again. The March numbers showed prices actually dropping slightly compared to February. Money experts predict that things will stay calm through December, with careful management continuing. Economic growth should reach six percent this year if exchange rates remain steady.
The government wants everyone to trust ZiG completely within five years. They need businesses to choose local money without being forced. Every month, more shops accept dollars and ZiG side by side. Banks noticed people keeping ZiG longer rather than changing it immediately. Dr. Mushayavanhu promised inflation would stay under thirty percent through next year. The bank keeps watching daily cash flows across the country. They meet weekly with business leaders to hear concerns early before problems grow bigger.
Money experts feel happy about less dollar use because ZiG stayed strong all year long. Local shops have kept prices steady since last October thanks to smart government rules. Most basic items cost the same for many months running. The central bank chief believes Zimbabwe can eventually use just one money type by 2030 if they keep moving carefully forward. Right this minute, about 35 percent of all buying happens with ZiG instead of dollars - much higher than last year when only 15 percent used local money.
Food actually became slightly cheaper with negative inflation last month. Other things went up by tiny amounts—less than one percent overall. Dr. Mushayavanhu explained that they must move step-by-step toward full ZiG use. Rushing creates panic, and people might run to banks, wanting all their savings at once. Many other countries tried changing money systems quickly and failed badly. The central bank learned these lessons well and plans very careful small steps instead.
Price stability matters more than anything else when building trust in local money. Banks watch the money supply extremely closely to prevent any surprise jumps. Rental prices caused a small bump earlier this year but quickly settled down again. The March numbers showed prices actually dropping slightly compared to February. Money experts predict that things will stay calm through December, with careful management continuing. Economic growth should reach six percent this year if exchange rates remain steady.
The government wants everyone to trust ZiG completely within five years. They need businesses to choose local money without being forced. Every month, more shops accept dollars and ZiG side by side. Banks noticed people keeping ZiG longer rather than changing it immediately. Dr. Mushayavanhu promised inflation would stay under thirty percent through next year. The bank keeps watching daily cash flows across the country. They meet weekly with business leaders to hear concerns early before problems grow bigger.
