New ZiG Notes Won’t Fuel Inflation – Mushayavanhu

Reserve Bank of Zimbabwe Governor John Mushayavanhu has said the planned release of a new family of Zimbabwe Gold (ZiG) banknotes will not trigger price increases, as the rollout will be backed by continued prudent management of the economy.

In an interview with The Sunday Mail, Mushayavanhu said the new ZiG notes would be issued strictly in line with demand and would not expand the money supply, thereby protecting price and exchange rate stability.

He added that full details of the rollout will be provided in the 2026 Monetary Policy Statement later this month. Said Mushayavanhu:

“As advised in previous Monetary Policy Statements, the upgrading of ZiG banknotes is at an advanced stage, and specific details will be contained in the forthcoming Monetary Policy Statement to be issued in February 2026.

“The issuance of the upgraded family of ZiG banknotes will not induce inflationary pressures as the Reserve Bank will issue notes based on market demand.”

He said the central bank would merely convert electronic balances into physical cash through existing reserve accounts held at the bank, meaning there would be no net increase in reserve money. Said Mushayavanhu:

“Ordinarily, the issuance of currency to the banking sector takes place through cash orders submitted by banks to the Reserve Bank.

“In this regard, the quantity of reserve money will not change as banks use their deposits at the Reserve Bank to buy the desired quantity of cash guided by the needs of their clients.

“Stated differently, banks will be simply swapping electronic balances for physical notes with no change in the quantity of money.

“As such, the injection of cash into the market will be demand-driven, linked to the needs of economic agents and changes in economic activity.”

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