Staff reporter

The Reserve Bank of Zimbabwe (RBZ) has emphasized the need to adopt digital money to alleviate the persistent demand for physical notes and coins.

Speaking at an all-stakeholder breakfast meeting RBZ Deputy Governor, Innocent Matshe emphasized that the Central Bank is committed to resolving the coin shortage issue adding that the gradual release of ZiG coins would meet market demand over time.

“The demand for the new currency has made it this scarce and be assured stakeholders that these coins would be gradually released into circulation. This phased approach is intended to ensure adequate supply while avoiding inflationary pressures. By backing the new currency with gold, the RBZ aims to create a robust and reliable monetary system that inspires confidence among the populace,” said Matshe.

Matshe stressed the importance of the new currency in stabilizing the economy and enhancing financial transactions. He also highlighted that in line with our efforts to promote a cash lite economy, we encourage the usage of electronic means of payment, as digital financial services are a key for financial inclusion.

"We are drip-feeding the ZiG into the system to ensure a smooth transition. We urge citizens to remain patient and the availability of ZiG coins depends on the country’s export performance, recently 10 percent increase in tobacco market prices would significantly contribute to sustaining Zimbabwe’s economy,” he remarked. 

Economist Dr. Phineas Kadonge highlighted that the adoption of digital money is seen as a strategic move to enhance transaction efficiency and reduce the reliance on physical cash.

“The RBZ’s efforts align with global trends towards cashless economies, promoting convenience and security in financial transactions. Digital money also offers a practical solution to the logistical challenges associated with distributing and managing physical currency,” said Kadonge.

Government’s introduction of the ZiG currency marks a pivotal moment for Zimbabwe’s economy. By backing the ZiG with gold, the RBZ has provided a strong foundation for its value, ensuring stability and fostering confidence.

The combined approach of introducing physical ZiG currency and promoting digital money is poised to address cash shortages, stabilize the economy, and pave the way for sustained economic growth.