Five months after its launch, Zimbabwe’s gold-backed currency, the ZiG, is facing significant challenges. Introduced in April at 13.6 ZiG per US dollar, it has since lost nearly 80% of its value on the black market and currently trades at between 20 and 26 ZiG per dollar. The new currency was part of a government plan to stabilize the economy, but experts cite a lack of public confidence as the reason behind the slow uptake. Traders prefer to trade in US dollars, doubting the ZiG’s stability and value. Despite slow uptake, Reserve Bank officials remain hopeful, suggesting increased taxation in ZiG could help boost adoption. The government’s goal is to establish the ZiG as the only currency by 2026, but doubts persist amid economic pressures from grain imports and weak foreign reserves.
SOURCE: EAST AFRICAN
Zimbabwe’s New Currency Struggles After Five Months
