Zimbabwe’s gold-backed currency, the ZiG, has lost nearly 50% of its value just six months after its introduction. Launched in April 2023 to reduce reliance on the US dollar, the ZiG has since been devalued by over 40%, following a sharp disparity between official and black market exchange rates. The currency was meant to stabilize Zimbabwe’s economy, which has long been plagued by hyperinflation and reliance on foreign currency. However, many Zimbabweans continue to rely on the US dollar for transactions, despite the government’s efforts. The devaluation reflects broader public mistrust and the government’s ongoing struggle to establish the ZiG as a viable local currency. While authorities remain optimistic about the ZiG’s future, experts warn that significant work is needed to restore public confidence in the currency.
SOURCE: AL JAZEERA
