The new ZiG cash is printed and waiting at the bank. Reserve Bank Governor John Mushayavanhu confirmed the notes are ready for a gradual release through financial institutions early next year. He stressed this rollout will be careful, matching real economic need to avoid hurting the currency's stability. The process will start within the first quarter of 2026, swapping electronic bank balances for physical cash without expanding the total money supply. Mushayavanhu tied this move to ongoing efforts for lasting price and exchange rate stability under the National Development Strategy Two.
The Governor pointed to recent economic gains as a reason for a positive outlook. He noted that ZiG inflation averaged only point four percent monthly through much of 2025. The exchange rate held steady between twenty-six and twenty-seven ZiG to one US dollar for most of the year, with the parallel market premium falling below twenty percent. Prices for basics like bread stabilized. Mushayavanhu credited better foreign exchange systems and strong fundamentals, including foreign reserves that now reach one point one billion dollars, covering about one point two months of imports. The bank aims for single-digit annual inflation by early next year.
Mushayavanhu detailed the strategy for maintaining this path. The reserve accumulation drive uses mandatory mining royalties, direct gold purchases, and part of export surrender receipts. The goal is optimal reserves covering three to six months of imports, aligning with SADC standards. He stated that current reserves fully back all ZiG deposits in the banking system. This backing, alongside prudent monetary policy and fiscal discipline, is meant to build public trust. He observed that people and businesses now keep ZiG in banks longer, believing it will hold its value, which creates economic predictability.
The Governor pointed to recent economic gains as a reason for a positive outlook. He noted that ZiG inflation averaged only point four percent monthly through much of 2025. The exchange rate held steady between twenty-six and twenty-seven ZiG to one US dollar for most of the year, with the parallel market premium falling below twenty percent. Prices for basics like bread stabilized. Mushayavanhu credited better foreign exchange systems and strong fundamentals, including foreign reserves that now reach one point one billion dollars, covering about one point two months of imports. The bank aims for single-digit annual inflation by early next year.
Mushayavanhu detailed the strategy for maintaining this path. The reserve accumulation drive uses mandatory mining royalties, direct gold purchases, and part of export surrender receipts. The goal is optimal reserves covering three to six months of imports, aligning with SADC standards. He stated that current reserves fully back all ZiG deposits in the banking system. This backing, alongside prudent monetary policy and fiscal discipline, is meant to build public trust. He observed that people and businesses now keep ZiG in banks longer, believing it will hold its value, which creates economic predictability.
