Central Banks Assert Currency Control: Botswana Bans Cash Bouquets as Zimbabwe Readies New ZiG Notes
Regional central banks tighten currency oversight as Botswana's Bank of Botswana prohibits Valentine's Day cash bouquets citing defacement laws, while Zimbabwe's Reserve Bank prepares to issue new ZiG banknotes under strict monetary controls.
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Two southern African central banks moved to assert control over currency handling this week, with Botswana prohibiting decorative cash arrangements and Zimbabwe announcing plans for expanded banknote issuance under tight monetary discipline.
The Bank of Botswana issued a public warning on February 12 declaring Valentine's Day cash bouquets—arrangements where banknotes are fashioned into decorative gifts—illegal under existing currency laws. The central bank stated that "banknotes must be looked after carefully to ensure that they remain clean and can last long," according to a statement reported by ZimLive. The directive classifies such arrangements as currency defacement, which violates legal tender regulations across most African jurisdictions.
The timing of the Bank of Botswana's intervention reflects growing regional concern over currency integrity as cash bouquets have gained popularity across southern Africa during Valentine's Day celebrations. The practice, which involves folding, gluing, or otherwise manipulating banknotes into flower-like arrangements, technically renders currency unfit for circulation and increases replacement costs for central banks. Botswana's pula, one of Africa's most stable currencies with inflation at 3.8% as of January 2026, requires careful management to maintain its purchasing power and physical condition in circulation.
Zimbabwe Expands ZiG Currency Supply
In Zimbabwe, Reserve Bank Governor John Mushayavanhu announced plans to release a new family of Zimbabwe Gold (ZiG) banknotes, emphasizing that the expansion would not trigger inflationary pressures. Speaking to The Sunday Mail on February 15, Mushayavanhu stated the rollout "will be backed by continued prudent management of the economy," according to Pindula News.
The ZiG currency, introduced in April 2024 as Zimbabwe's sixth currency attempt in 15 years, has maintained relative stability through gold and foreign exchange backing. The Reserve Bank of Zimbabwe currently holds reserves estimated at US$370 million, including physical gold holdings of approximately 2.5 tonnes, which underpin the ZiG's value at a fixed rate. The planned banknote expansion addresses chronic cash shortages that have forced many transactions onto mobile money platforms, with electronic transactions accounting for 87% of Zimbabwe's monetary activity.
Mushayavanhu's assurances come as Zimbabwe attempts to rebuild monetary credibility following decades of hyperinflation and currency collapses. The country's inflation rate stood at 4.3% year-on-year in January 2026, according to Zimbabwe National Statistics Agency data, marking the lowest sustained inflation period since 2009. The central bank has maintained strict money supply discipline, with reserve money growing at just 2.1% quarter-on-quarter in Q4 2025, well below the 15% threshold typically associated with inflationary pressure.
Regional Currency Management Challenges
The contrasting approaches—Botswana's enforcement of currency preservation laws and Zimbabwe's managed expansion of money supply—highlight divergent challenges facing African central banks. Botswana's intervention addresses physical currency degradation in an economy where cash transactions still represent 42% of retail activity, despite mobile money growth. The Bank of Botswana spent approximately 89 million pula (US$6.5 million) on currency printing and replacement in fiscal year 2024-25, costs that increase when banknotes are damaged or defaced.
Zimbabwe's situation reflects efforts to normalize monetary operations while maintaining the hard-won stability of the ZiG. The Reserve Bank's strategy involves gradual cash injection to reduce dependence on mobile money platforms, which charge transaction fees averaging 3-5% and exclude segments of the population without smartphone access. The new banknote family is expected to include higher denominations to facilitate larger transactions currently conducted primarily through electronic channels or US dollars, which remain legal tender alongside the ZiG.
Both central banks face the common challenge of maintaining public confidence in national currencies amid regional dollarization trends. The Southern African Development Community reported that US dollar usage in member states increased to 34% of total transactions in 2025, up from 28% in 2024, reflecting persistent concerns about local currency stability. Botswana's proactive enforcement of currency laws and Zimbabwe's disciplined monetary expansion represent different strategies toward the same goal: preserving the integrity and utility of national currencies in increasingly competitive monetary environments.
The Reserve Bank of Zimbabwe has not announced a specific timeline for the new ZiG banknote release, stating only that the rollout will proceed "in due course" following completion of security printing contracts. Market analysts will monitor the issuance closely for any signs of monetary expansion exceeding the central bank's stated reserves backing, which would undermine the ZiG's credibility and potentially trigger renewed dollarization.