Mangudya said this while addressing Members of Parliament attending the 2020 National Budget seminar at Elephant Hills Resorts in Victoria Falls on Thursday.
He revealed that $2 bond coins and $2 and $5 notes will be eased into circulation to add to the $855 million bond notes and coins already in use.
This will bring issued cash to just under 10 per cent of total deposits in both local and foreign currency.
Mangudya added that the Zimbabwe dollar should exchange at $5-$8 against the US dollar and not the current 1:15 at the interbank market.
The central bank chief also said that Zimbabwe has the lowest cash to deposits ratio when compared to other African countries, with Tanzania having up to 15 per cent.
Currently, Zimbabwe has about $19 billion in circulation, with only 4,5 per cent being cash.