Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) governor Dr John Mushayavanhu Monday laid bare the commitment to walk the tight rope of hardwork which will attract deserved confidence in the local currency
He made the remarks during a question and answer session with Members of Parliament after presenting the Monetary Policy Statement (MPS) to them yesterday.
The central bank exchequer said Zimbabwe had entered a more stable macro-economic phase, characterised by subdued inflation, a steady exchange rate and a policy rate that had remained unchanged for more than a year.
“Confidence cannot be legislated, but it can be driven by stable inflation and a stable currency,” Dr Mushayavanhu said.
“If we continue on this trajectory, we will build confidence and ultimately have an exchange rate that is market-determined.”
Zimbabwe’s inflation, measured in the Zimbabwe Gold (ZiG) currency, declined to 3,8 percent year-on-year in February 2026, from 4,1 percent in January.
He told legislators that to further improve cash availability and circulation, the central bank has introduced a new series of banknotes. These include upgraded ZiG10, ZiG20 and ZiG50 denominations, which will enter circulation on April 7, 2026.
Higher denominations ZiG100 and ZiG200 will be introduced as the bank deems necessary. The existing ZiG10 and ZiG20 notes will remain legal tender alongside the new series.
The Governor said the central bank has maintained a tight, but consistent policy stance, with the policy rate held at 35 percent for over a year, providing predictability to the market.
“The sustained stability has helped contain price pressures and anchor expectations.We have seen a very stable interest rate at 35 percent for over a year now. We have seen stable prices. We have managed to reduce inflation and continue to improve the quality of life.”
He said he would continue to work on improving confidence in the local currency, riding on the stable environment that we are now seeing and underscored that improved stability has allowed contracts to continue being denominated in currency value, signalling the gradual restoration of money’s unit-of-account function.
“We used to be in hyperinflation, where if you introduced a note today, before the end of the month, that note would no longer be binding. Now, with the stability we are seeing, money continues to carry value.”
“In January 2024, bread was at ZiG32 and it is still maintained at ZiG32.That stability in money is what we want to ensure so that the currency remains viable,” he added
