NXC Currency Reporter and ZBC News
The Ndlovu Currency Index (NCX) has welcomed the release of the new ZiG notes, saying that confidence in a currency’s behaviour and performance is key to maintain strength in the performance of money.
Upgraded Zimbabwe Gold (ZiG) notes began circulating this week, marking a key milestone in the country’s currency reform programme.
The Reserve Bank of Zimbabwe (RBZ) is releasing the new notes in phases, starting with ZiG10, ZiG20, and ZiG50 denominations, with higher denominations of ZiG100 and ZiG200 expected to follow.
A statement from the (NCX): the economic indicator designed to measure how much confidence markets and the public have in a country’s currency and monetary policy – said that the index would not only apply a basket of variables to the (not-so-new) currency, but also track the behaviour of the currency and assess its approach to transcating on domestic and global markets.
“Confidence is an intangible asset in economics. By virtue of its intangibility, its intrinsic value is difficult to measure, let alone to manage and quantify. What we have done at the NCX Index is to apply a theoretical/analytical economic model intended mainly for policy analysis and research – and the ZiG is a great place to apply the confidence index.
“In terms of monetary policy, confidence is gained if the public believes that the monetary authorities will actually carry out their stated objectives like price and currency stability.
“In this model confidence is ipso facto intertwined with trust, that is to say, faith in the soundness of the monetary system. The inflation expectations of the market and, the foreign exchange value of the currency tend to be aligned with the actions of the monetary authorities,” banker, currency expert, NCX founder and principal Collet Ndlovu said.
He added that the NCX Index quantified currency confidence — which is normally a qualitative concept—by comparing: expected inflation in the economy, actual or targeted inflation by policymakers, market expectations of the exchange rate, and the official exchange-rate targets set by authorities.
State media is reporting that the rollout of the ZiG comes as foreign currency reserves backing the unit rise to US$1.3 billion, strengthening confidence in the domestic currency.
Authorities say the upgraded notes feature improved durability, enhanced security features, and high-quality designs aligned with international standards. Existing ZiG notes will continue circulating alongside the new series until they are gradually phased out.
Members of the public expressed mised feelings of the rollout, noting that smaller denominations will improve access to change and ease day-to-day transactions.
Others urged Zimbabweans to embrace the domestic currency, highlighting that neighbouring countries rely on their own units to drive economic activity.
Economist Dr Zachary Tambudzai was quoted in the Zimbabwe Broadcasting Corporation saying that the RBZ’s approach, particularly its public awareness campaigns and commitment to prudent monetary policy.
“I commend the RBZ for spearheading educational campaigns ahead of the currency rollout. Their commitment to a tight monetary policy stance is crucial for stable prices and a strong domestic currency, which are essential for supporting industry and commerce.
This week will be an important milestone in Zimbabwe’s currency reform agenda, marking a step forward in safeguarding the domestic currency,” he said.
The rollout comes at a time when Zimbabwe has recorded key economic gains, including single-digit inflation in local currency terms, a relatively stable exchange rate, and a narrowing gap between official and parallel market rates.
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