The Reserve Bank of Zimbabwe (RBZ) has commenced the production of redesigned ZiG banknotes, a move authorities say is intended to enhance the durability and security of the notes. The redesigned currency is expected to be rolled out into circulation in the coming months. While the central bank maintains that this is simply a redesign and not the introduction of a new currency, the decision has been widely interpreted as a tacit acknowledgment that the ZiG – launched with fanfare just over a year ago – has struggled to maintain public confidence.
The development has reignited memories of Zimbabwe’s long and turbulent history with failed currency experiments. Economic instability first became sharply visible in the early 2000s, following the chaotic land reform program, capital flight, and international sanctions. By 2003, then–RBZ Governor Gideon Gono resorted to a series of ad hoc measures to prop up the local currency, including the issuance of bearer cheques and agro-cheques and multiple rounds of redenomination. Yet hyperinflation rendered these efforts futile, eroding savings, pensions, and wages, and ultimately forcing the government to abandon the Zimbabwe dollar in 2009.
For the following decade, Zimbabweans relied on a basket of foreign currencies, primarily the US dollar and South African rand, which brought a degree of stability. However, cash shortages prompted the introduction of bond notes in 2016, initially pegged 1:1 to the US dollar. Public rejection and renewed inflation quickly undermined confidence in the instrument. A further attempt at de-dollarisation came in 2019 with the reintroduction of the Zimbabwe dollar, but it too rapidly lost value.
RBZ Begins Redesign of ZiG Banknotes Amid Lingering Currency Skepticism
In April 2024, the RBZ launched the ZiG (Zimbabwe Gold), promoted as a “gold-anchored” currency backed by the country’s gold reserves and foreign currency holdings. Officials promised that the ZiG would restore public trust in the domestic currency, but the measure has so far struggled to achieve widespread acceptance. The currency’s purchasing power has steadily eroded, while mobile money platforms, where the ZiG is meant to circulate alongside foreign currencies, have remained problematic. Many retailers continue to prefer US dollars, ignoring official exchange rates.
Currently, only ZiG10 and ZiG20 notes are in circulation. Other denominations announced during the launch never fully entered the market. The RBZ has attributed the redesign to concerns over note durability and the risk of counterfeiting. RBZ Governor Dr. John Mushayavanhu insisted the changes reflect “standard international practice” rather than an admission of failure. “The Reserve Bank is not going to issue a new currency. We are merely redesigning the current banknotes to enhance quality in line with international standards,” he said.
Critics, however, interpret the redesign as an admission of the ZiG’s faltering credibility. With inflation continuing to erode wages and US dollars remaining the preferred store of value, the local population remains skeptical. Economists point out that promises of a stable, mono-currency regime have been made repeatedly—in 2003, 2006, 2008, 2016, and 2019—only to end in currency collapse.
Economist and RBZ Monetary Policy Committee member Persistence Gwanyanya defended the move, stating that the redesign reflects the authorities’ seriousness in stabilising the currency. “All this can be construed as measures to restore confidence in the country’s currency. It reflects seriousness towards the currency’s stability and permanency,” he said.
In addition to the physical redesign, the RBZ is pushing mobile money platforms to ensure seamless use of the ZiG alongside foreign currencies. Despite these efforts, high transaction fees and a lack of faith in the official exchange rate continue to discourage public uptake. Stakeholders have urged the central bank to lower banking charges and improve access to digital payments, warning that the current costs limit adoption of the local unit.
Zimbabweans’ experiences with currency—from bearer cheques to bond notes, from the Zimbabwe dollar to the ZiG—paint a sobering picture of persistent monetary instability. While the redesign is framed as a technical improvement, many see it as the latest chapter in a long history of failed currency experiments. Economists argue that without addressing structural economic challenges—including low production, corruption, and weak investor confidence—no cosmetic changes or rebranding efforts can restore lasting trust in Zimbabwe’s currency.
The rollout of redesigned ZiG notes will test whether the public’s confidence can be salvaged or whether the country’s citizens will once again revert to foreign currencies as a safe store of value. For now, the RBZ hopes that enhanced durability, better security features, and a concerted push for mobile integration will encourage adoption, but the shadow of past failures looms large over the initiative.
Source- ZimEye
