ZiG’s Future Depends On Purchasing Power, Not Paper Quality, Says Economist

Economist Luxon Zembe has said that long-term confidence in the ZiG will depend on the currency’s ability to retain value, rather than on the recent launch of better-quality banknotes.

ZiG’s Future Depends On Purchasing Power, Not Paper Quality, Says Economist
ZiG’s Future Depends On Purchasing Power, Not Paper Quality, Says Economist

 

The new ZiG notes, introduced in phases last month, are now in wide circulation through automated teller machines (ATMs) and banking halls. The ZiG10, ZiG20 and ZiG50 denominations have improved access to cash for both households and businesses.

As part of efforts to manage liquidity, the Reserve Bank of Zimbabwe (RBZ) has set weekly cash withdrawal limits at ZiG10,000 for individuals and ZiG100,000 for corporates.

Zembe said the key issue remains whether the currency can consistently preserve value.

“It is still too early to address the confidence question. What matters most is value retention, not the physical quality of the notes,” he said.

He added that sustained stability for at least six months would be needed to shift public perception.

“If stability continues, then you will begin to see confidence picking up.”