NEARLY half of all transactions being processed through Zimbabwe’s National Payment System are now being conducted in Zimbabwe Gold (ZiG), sharply up from just 26 percent when the new currency was introduced last year.
This indicates growing public confidence and widespread acceptance of the structured currency. The dramatic increase in ZiG usage, from ZiG7,86 billion (26 percent) in April 2024 to ZiG56,8 billion (43 percent) as of May 30, marks a significant milestone in the currency’s acceptance by the transacting public and demonstrates increasing public confidence in the gold-backed local unit since its introduction just over a year ago.
In an interview, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu said the surge reflects improved macroeconomic stability and increased confidence among economic agents in using ZiG for both transactions and savings purposes.
“It is important to note that the prevailing macroeconomic stability has improved ZiG’s demand for transactions and saving purposes,” he said.
“Importantly, the velocity of ZiG has significantly moderated, suggesting that an increasing number of economic agents are now keeping ZiG in their bank accounts for relatively longer periods.
“Reflecting on this, the proportion of local currency transactions on the National Payment System increased from ZiG7,86 billion (26 percent) in April 2024 to ZiG56,8 billion (43 percent) as at May 30, 2025.
“Consequently, and naturally, the improvement in local currency settlements has also resulted in increased demand for ZiG cash in the economy.
“These developments largely reflect increased confidence in the local currency by economic agents and increased ZiG usage in the economy.”
The growing adoption of ZiG comes as the RBZ continues building substantial gold reserves to back the currency.
On Thursday last week, President Mnangagwa visited the RBZ’s vaults, where he was shown 3 400kg of gold, up from 1 500kg this time last year — demonstrating continued growth in reserves underpinning the currency. The central bank is targeting a stockpile of 5 tonnes of gold by year-end, part of its strategy to provide a tangible asset base for the structured currency introduced in April 2024.
Responding to recent concerns about the availability of physical ZiG notes, Dr Mushayavanhu said the RBZ had stepped up cash disbursements to banks and was actively working with financial institutions to widen access through automated teller machines (ATMs) and banking halls, particularly in remote and underserved areas.
“The Reserve Bank is actively working to enhance access to ZiG cash through ATMs, and banks are currently in the process of configuring their systems to facilitate this cash disbursement through ATMs,” he said.
Dr Mushayavanhu said the central bank has directed financial institutions to ensure customers are regularly informed about ZiG cash availability.
He added that the Reserve Bank was monitoring cash demand closely and remains ready to inject additional banknotes and coins into the market, in line with economic activity and public usage patterns.
“The level of economic activity and increased usage of transactions settled in ZiG in the economy guide the amount of ZiG notes and coins to be injected into the economy,” he added.
“In this context, the Reserve Bank remains committed to ensuring that all the demand for ZiG cash is met and that it fully supports transactional convenience.”
Dr Mushayavanhu dismissed fears that increasing physical cash in circulation could fuel inflation or destabilise the economy.
“The injection of ZiG notes and coins in the economy by the Reserve Bank will not result in excess liquidity, but will, to a lesser extent, help mop up extra liquidity in the banking system as the cash will be exchanged for the electronic balances already held by banks at the Reserve Bank.
“The injection will, therefore, assist in enabling smooth settlement of small transactions, while huge transactions will continue to be settled electronically, in line with the bank’s cash-lite drive.
“Furthermore, the cash withdrawals will be informed by the demand for physical cash by economic agents.
“As such, the Reserve Bank will not issue more ZiG cash than what is already existing in the banks’ deposits at the central bank.”
He added: “As mentioned in the press statement on June 13, 2025, the Reserve Bank, in partnership with banks, has implemented measures to improve the availability and distribution of cash through banking halls and ATMs.
“It is essential to recognise that ZiG cash has consistently been accessible at all banks, primarily via banking halls, while only a limited number of banks were offering cash through ATMs.” – Sunday Mail Zimbabwe
