• RBZ’s ZiG redesign aims to enhance durability, security, and denominations, but its timing just 18 months after launch risks signalling instability
• Zimbabwe’s history of hyperinflation and failed currencies makes public trust fragile, meaning even cosmetic changes can trigger defensive behaviour and dollarisation
• Without transparent communication and broader reforms, the redesign may entrench scepticism rather than strengthen confidence in the ZiG

Harare - The Reserve Bank of Zimbabwe (RBZ) is redesigning its Zimbabwe Gold (ZiG) banknotes to improve their quality, durability, and security features, as part of its broader de-dollarisation strategy aiming for a mono-currency regime by 2030.

The redesign addresses public complaints about the current ZiG notes (introduced in April 2024), which wear out quickly, fade, and are inconvenient due to limited denominations (only ZiG10 and ZiG20 are in circulation).

The new notes will feature enhanced anti-counterfeiting measures and better paper quality to align with international standards.

RBZ Governor John Mushayavanhu has emphasised that, “this is not a new currency but an upgrade of the existing ZiG, backed by foreign currency and gold reserves to restore public trust. “

According to the Gorvenor, the rollout is at an advanced stage, with a public announcement expected soon.

‘’The Reserve Bank further advises that the re-design and production process of the improved ZiG banknotes is progressing very well and is at an advanced stage.,’’ reads the 2025 Mid Term Monetary Policy.

Zimbabwe is not the first to do so. In 2015–2019, Norway redesigned its krone banknotes, moving from traditional portraits to a pixelated, mosaic-inspired design reflecting boundaries between sea, land, and air. The redesign improved security and modernized aesthetics.

In 2016, India demonetized its ₹500 and ₹1,000 notes and introduced new designs with enhanced security features ( microtext, colour-shifting ink) to combat counterfeiting and black money, alongside issuing a new ₹2,000 note. The redesign was part of a broader economic reform.

In Europe, the Eurozone periodically updates euro banknotes (Europa series, 2013–2019) to enhance security with features like holograms and raised print, while maintaining consistent designs across member states.

The UK transitioned to polymer banknotes ( £5, £10, £20) between 2016 and 2021, featuring new designs (Winston Churchill on the £5) for durability and anti-counterfeiting measures.

Closer to home, South Africa redesigned its rand banknotes in 2012 to include Nelson Mandela’s portrait and in 2023 added animal-themed designs, enhancing security and reflecting national heritage.

A key benefit of the redesign is enhanced security, reducing counterfeiting through features like holograms, microtext, or UV elements.

 Zimbabwe’s past currencies suffered from crude printing during hyperinflation (2006–2009), and a secure ZiG could rebuild trust, as seen in India’s 2016 note redesign, which curbed counterfeiting with advanced features, while a  modern design reflecting national identity could encourage ZiG adoption, similar to South Africa’s 2012 rand redesign featuring Nelson Mandela.

The redesign could also improve transactional efficiency by introducing new denominations (50 or 100 ZiG notes, previously withheld), addressing cash shortages, as the UK’s 2016–2021 polymer note transition achieved.

Conversely, the redesign risks deepening public skepticism. Zimbabweans, wary from repeated currency failures (2008’s $100 trillion ZWR note), may view the redesign as another doomed effort, favoring USD or black-market trading.

Economic disruption is another concern, as a rapid rollout could disrupt the informal economy, similar to India’s 2016 demonetization, which caused cash shortages.

The high cost of printing and circulating new notes could strain Zimbabwe’s fiscal resources, as seen in Nigeria’s costly 2022 naira redesign. Introducing higher denominations might also fuel inflation signaling price increases, as occurred with Zimbabwe’s 2008 notes.

Without broader reforms to address trade deficits and low productivity, the redesign may fail, as Venezuela’s 2018 bolívar redesign did amid economic mismanagement.

This is a purely technical exercise upgrading paper quality, enhancing security features, and improving transaction convenience.

The redesign is strictly cosmetic and the notes remain equivalent to those currently circulating fully backed by gold reserves the immediate monetary value does not change.

Yet, even cosmetic changes can carry unintended behavioural and economic consequences, especially in Zimbabwe’s historically fragile currency environment.

From a behavioural standpoint, frequent redesigns risk eroding trust in the currency. Zimbabweans have lived through episodes of hyperinflation, multiple redenominations, and the eventual collapse of the Zimbabwean dollar. Such episodes left deep scars in the national psyche.

That the RBZ is redesigning the ZiG just 18 months after its introduction raises inevitable questions, if changes can occur this quickly, what guarantee exists that another overhaul or an entirely new currency won’t follow? The perception of instability, even if the underlying gold backing remains intact, can undermine trust.

When confidence wanes, people behave defensively. They accelerate spending before value is lost, convert holdings into hard assets or foreign currency, and avoid formal financial channels. In such conditions, confidence is as much a behavioural phenomenon as a technical one. Public perception alone can trigger inflationary pressures and liquidity shifts faster than fundamental supply changes.

Repeated redesigns risk cementing a “trust deficit” between the central bank and the public. Businesses, uncertain about the long-term value of the ZiG, may increasingly price goods and services in foreign currencies.

Banks could face shrinking deposits in local currency, weakening their ability to provide credit. Over time, such trends entrench dollarisation and undermine Zimbabwe’s monetary sovereignty.

Even the credibility of the ZiG’s gold backing depends on public belief in the RBZ’s discipline. Without a transparent and predictable policy framework, redesigns risk sending a signal of instability, weakening the ZiG’s role as both a store of value and a medium of exchange.

 Equity Axis News