THE Reserve Bank of Zimbabwe (RBZ) will begin distributing the new Zimbabwe Gold (ZiG) banknotes and coins to commercial banks tomorrow, with the public set to start withdrawing cash from their accounts on Tuesday morning.
The central bank has since set weekly cash withdrawal limits at ZiG3 000 for individuals and ZiG30 000 for corporates to manage the initial rollout.
The new currency — backed by a combination of gold, precious minerals, and foreign currency reserves — will start circulating in the market on Tuesday. Notably, all ZiG banknotes and coins were produced locally.
In an interview with our Harare Bureau yesterday, RBZ Governor Dr John Mushayavanhu said everything was in place for the seamless distribution of the new currency.
“All banks will start collecting cash from the Reserve Bank of Zimbabwe on Monday (tomorrow),” said Dr Mushayavanhu.
“We have since communicated with them, including giving them a communiqué on the cash withdrawal limits.
“Banks have already been advised on the maximum limits for withdrawal by individuals, corporates, schools and Government.”
In a directive to local banks dated 10 April, the RBZ’s Financial Intelligence Unit (FIU) indicated the cash withdrawal limits.
“In view of the introduction of the new structured currency, ZiG, through the Reserve Bank Governor’s Monetary Policy Statement on April 5, 2024, the following ZiG cash withdrawal limits shall apply,” reads the directive.
“Individuals: ZiG3 000; corporates: ZiG30 000; schools, hospitals, clinics, and local authorities: ZiG250 000 (monthly); Government ministries and departments ZiG300 000 (monthly).”
The directive places no limits on cash withdrawals by Parliament, courts and international organisations.
It states that withdrawal limits for United States dollar accounts remain unchanged.
“Banks are required to undertake due diligence when processing cash requests for customers to ensure the facility is not used for criminal activities,” it continues.
“Where a customer has a valid need to withdraw cash above the stipulated limit, the bank shall continue to submit such an application to the FIU, clearly setting out the special grounds for the request.
“The FIU will not grant any such requests unless satisfied that no other forms of payment are reasonably available to the customer.”
Bankers Association of Zimbabwe president Mr Lawrence Nyazema said financial institutions were ready for the rollout.
“We are on course to provide the new notes and coins to our customers and clients on the date that was announced,” he said.
“The RBZ and banks have been conducting publicity campaigns in preparation for the launch.
“We are now in the final stages of operational readiness for the exercise.”
The ZiG notes and coins will be drip-fed into the market in denominations ranging from ZiG1 to ZiG200.
The new currency replaced the Zimbabwe dollar, which has been rapidly depreciating against major currencies since the beginning of the year. The RBZ has in its reserves US$100 million in foreign currency, and 2,5 tonnes of gold valued at US$185 million.
