Zimbabwe Gold (ZiG) is a new currency that was just introduced by Zimbabwe. This currency, which was introduced on April 29, 2024, by the Reserve Bank of Zimbabwe (RBZ), is special since it is backed by both foreign money and gold reserves. In the last fifteen years, Zimbabwe has issued six different currencies, a reflection of the country’s continuous battle with hyperinflation and monetary issues.
Zimbabwe has been struggling with extreme inflation, with annual rates rising beyond 55 percent. The implementation of ZiG is intended to reduce this inflation, with a goal of 2% annually. $100 million in foreign exchange reserves and 2.5 tonnes of gold back the new currency.
ZiG, which aims to lessen reliance on foreign currencies and rebuild trust in the local currency, is offered in both physical and digital forms.
Although the ZiG gained 1.9% against the US dollar upon introduction, there have been major local challenges for the currency. Zimbabwean authorities have noted an increase in illicit foreign exchange trade, which threatens the country’s legitimate currency system. This illegal trading is a part of a larger trend in which companies and traders choose to operate on a parallel market rather than at the official ZiG exchange rate.
The Zimbabwe Reserve Bank (ZRB) has responded with force. The public has been urged to report any instances in which merchants or companies decline to take the ZiG at the official exchange rate.
This appeal is a component of a larger campaign to stop illicit currency trade. Authorities have so far punished 40 people involved in illicit operations, blocked 90 bank accounts, and detained 224 illegal FX dealers.
The Reserve Bank of Zimbabwe has declared plans to enhance the utility of the new currency in order to encourage its adoption. Debit card cash withdrawals will be available in seven major cities on June 10 at the government-owned Homelink financial services company. In order to make daily transactions easier, the Reserve Bank of Zimbabwe has been working to increase the quantity of coins in circulation due to problems with the availability of the ZiG’s smaller values.