Zimbabwe’s Gold-Backed Currency ZiG Faces Public Skepticism, Market Challenges

Zimbabwe’s new gold-backed currency, ZiG, introduced in April 2024, has struggled to gain public confidence amid economic uncertainty. A survey revealed 62% of Zimbabweans lack trust in its ability to resolve economic issues. The currency’s value has sharply fallen, with the official rate devalued by 44% in November 2024. Retailers warn of potential store closures due to the overvalued exchange rate, which makes products uncompetitive in formal markets. Despite government efforts, including foreign currency injections and arrests of forex dealers, public distrust and inflation remain key obstacles to the currency’s success.

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