RBZ to more than triple ZiG cash withdrawal threshold

LIVINGSTONE MARUFU

The Reserve Bank of Zimbabwe (RBZ) is set to more than triple Zimbabwe Gold (ZiG) cash withdrawal limits as part of a broader push to deepen circulation of the domestic currency and improve transactional convenience across the economy.

The move comes as businesses and consumers grapple with an acute shortage of ZiG notes and coins in circulation, a development that has increasingly made it difficult for retailers and commuter transport operators to provide change for everyday transactions.

Announcing the policy adjustment at the Confederation of Zimbabwe Industries (CZI) Business and Economic Outlook Symposium, RBZ Governor Dr John Mushayavanhu said the central bank is seeking to widen demand for the domestic currency by improving access to cash while maintaining flexibility within Zimbabwe’s multi-currency framework.

Under the new framework, individual cash withdrawal limits will increase to ZWG10,000, up from ZWG3,000, while corporate withdrawal thresholds will rise to ZWG100,000 from ZWG30,000.

“The Reserve Bank will increase cash withdrawals for individuals to ZWG10,000 from ZWG3,000 and to ZWG100,000 from ZWG30,000 for corporates to ensure that sufficient and optimal quantities of banknotes and coins are available to meet public demand, taking into account the size of banking sector deposits and levels of economic activity,” Dr Mushayavanhu said.

The adjustment follows mounting complaints from businesses and commuters over the scarcity of ZiG cash in circulation, which has disrupted routine commercial transactions.

Retail outlets, supermarkets and commuter omnibus operators have increasingly struggled to provide change, forcing many transactions to revert to foreign currencies or digital payment platforms even where pricing is denominated in the local currency.

By raising withdrawal thresholds, the RBZ hopes to improve the physical availability of ZiG banknotes and reinforce the currency’s role in everyday transactions.

The policy shift aligns with the central bank’s broader strategy outlined in the 2026 Monetary Policy Statement, which acknowledged that confidence in the ZiG cannot be imposed through regulation alone.

Instead, the RBZ emphasised that public trust must be built gradually through sustained macroeconomic stability, consistent policy implementation and predictable monetary outcomes.

In line with this approach, the central bank is rolling out an upgraded series of ZiG banknotes and introducing additional policy tools aimed at encouraging wider use of the domestic currency without abruptly dismantling the country’s multi-currency system.

“These actions signal a thoughtful transition strategy rather than abrupt or arbitrary policy changes, which supports sustainability and credibility,” Mushayavanhu said.

As part of the currency management programme, the RBZ has introduced upgraded ZWG10 and ZWG20 banknotes into circulation.

The new notes will circulate alongside the existing ZWG10 and ZWG20 banknotes issued under Statutory Instrument 60 of 2024 for an indefinite period. The older notes will gradually be withdrawn from circulation once they are deposited into the banking system.

This means both the old and new ZWG10 and ZWG20 banknotes will circulate simultaneously during the transition period.

Authorities emphasised that there will be no special exchange facilities for the older notes. Instead, the new notes will enter the economy through normal banking and commercial transactions, meaning customers may receive either the old or upgraded banknotes as change.

In a significant expansion of the ZiG banknote family, the RBZ will also introduce an upgraded ZWG50 denomination for the first time.

The central bank further indicated that higher denominations — ZWG100 and ZWG200 — will be gradually released into circulation in response to prevailing monetary conditions.

“The Reserve Bank will formally announce the issuance into circulation of the new ZWG100 and ZWG200 denominations at the appropriate time,” Dr Mushayavanhu said.

According to the RBZ, the structured rollout of the upgraded “BiG 5 ZiG” banknote series is designed to ensure a smooth transition while maintaining continuity in domestic currency transactions.

Authorities say expanding demand for ZiG remains a critical precondition for the eventual transition toward the exclusive use of the local currency.

“To foster increased demand for ZiG in the economy is one of the critical conditions precedent for promoting exclusive use of the local currency,” Mushayavanhu said.

“In this context, the Reserve Bank continues to work with Government to implement complementary measures to increase and widen the demand for ZiG through transactional convenience and pricing incentives.”

The central bank believes improving the physical availability of cash, alongside broader policy reforms, will encourage greater adoption of the local currency in daily transactions.

Alongside the rollout of new banknotes, the RBZ is also pursuing an ambitious digitisation agenda aimed at modernising Zimbabwe’s payment ecosystem.

Mushayavanhu said the central bank will further enhance the national payment system to support digital, cash-like forms of money that retain the convenience of physical cash while leveraging digital infrastructure.

The initiative is intended to complement the upgraded ZiG banknote series and align Zimbabwe’s payments architecture with international best practices.

“The digital agenda will complement the upgraded BiG 5 ZiG Banknote Series consistent with international best practices in the payments arena,” he said.

Recognising that public confidence in a currency depends partly on familiarity with its features, the RBZ will launch a nationwide education campaign to familiarise citizens with the upgraded banknotes and their security features.

The outreach programme will cover all provinces and districts and will run for more than 30 days, beginning in March 2026 and extending into early April when the new banknotes are expected to be issued to the public through banks.

The campaign will utilise multiple communication platforms, including radio, television, newspapers and the RBZ website.

Authorities will also work with financial institutions, retailers, transport operators, public bodies, faith-based organisations and community stakeholders to ensure the information reaches a broad cross-section of Zimbabwean society.

Ultimately, the RBZ believes the introduction of the refreshed and upgraded “BiG 5 ZiG” banknote series will strengthen trust and credibility in Zimbabwe’s domestic currency.

The central bank says a well-recognised and secure banknote family not only reinforces national identity but also improves the ease and reliability of everyday transactions.

“The introduction of the refreshed and upgraded BiG 5 ZiG Banknote Series, a symbol of national identity, is expected to enhance trust, confidence and credibility in the local currency, as well as transactional convenience,” Mushayavanhu said.

Authorities say these measures will play a critical role in deepening the use of the domestic currency across the economy while supporting broader efforts to consolidate price stability and exchange rate stability.