The Reserve Bank of Zimbabwe (RBZ) will begin distributing new Zimbabwe Gold (ZiG) banknotes and coins to commercial banks tomorrow, with the public scheduled to begin withdrawing cash from their accounts on Tuesday morning.
Since then, the central bank has set weekly cash withdrawal limits at ZiG3,000 for individuals and ZiG30,000 for companies to manage the IPO.
The new currency – backed by a mix of gold, precious metals and foreign currency reserves – is scheduled to begin trading in the market on Tuesday. Notably, all ZiG banknotes and coins were produced locally.
In an interview with our office in Harare yesterday, RBI Governor Dr. John Mushayavanhu said everything is in place for the smooth distribution of the new currency.
“All banks will start collecting cash from the Reserve Bank of Zimbabwe on Monday (tomorrow),” Dr Mushayavanhu said.
“We have since communicated with them, including giving them a statement on cash withdrawal limits.
“Banks have already been notified about the withdrawal caps by individuals, businesses, schools and the government.”
In a directive to local banks dated April 10, the Federal Reserve’s Financial Intelligence Unit (FIU) indicated cash withdrawal limits.
“In light of the introduction of the new structured currency, ZiG, through the Reserve Bank Governor’s Monetary Policy Statement on 5 April 2024, the following ZiG cash withdrawal limits should apply,” the guidance said.
“Individuals: ZiG3 000; Businesses: ZiG30 000; Schools, hospitals, clinics and local authorities: ZiG250 000 (monthly); Ministries and government departments ZiG300 000 (monthly).”
The directive does not place any restrictions on cash withdrawals by Parliament, courts and international organizations.
It stipulates that withdrawal limits for US dollar accounts remain unchanged.
“Banks are required to exercise due diligence when processing customers’ cash orders to ensure that the facility is not being used for criminal activities,” he continues.
“When a customer has a valid need to withdraw cash amounts above the stipulated limit, the bank must continue to submit this request to the FIU, clearly identifying the specific reasons for the request.
“The FIU will not approve any such requests unless it is satisfied that no other payment methods are reasonably available to the customer.”
Bankers Association of Zimbabwe president Lawrence Nyazima said financial institutions were ready to begin implementation.
“We are on our way to deliver the new banknotes and coins to our clients and customers on the date that was announced,” he said.
“The Fed and banks conducted publicity campaigns in preparation for the launch.
He added: “We are now in the final stages of operational readiness for the exercise.”
ZiG drip banknotes and coins will be introduced to the market in denominations ranging from ZiG1 to ZiG200.
The new currency replaced the Zimbabwean dollar, which has depreciated rapidly against major currencies since the beginning of the year. The Federal Reserve Bank has in its reserves $100 million in foreign currencies and 2.5 tons of gold worth $185 million. Sunday news
