Recently, to address its long-standing economic instability, the Reserve Bank of Zimbabwe (RBZ) has launched a new gold-backed currency called the ZiG.
About ZiG:
The Zimbabwe Gold(ZiG) is a new gold-backed currency launched by Zimbabwe.
The ZiG, now the sixth currency used by Zimbabwe, has been in circulation since April 5, 2024.
Key features of ZiG
The ZiG stands out as a new currency backed by gold reserves, ensuring its value is supported by the physical gold held by the government.
ZiG notes and coins will be available and issued in denominations: 1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG and 200ZiG, with the gold backing aims to provide stability and prevent currency devaluation.
Reasons for launching a new currency
Zimbabwe has grappled with high inflation, with rates surpassing 500% in recent years.
Consequently, the Zimbabwean dollar, introduced in 1980, lost its value due to Following this, the country relied on various currencies, primarily the US dollar, leading to limited control over its economy.
The collapse of the Zimbabwean dollar in 2009, with hyperinflation peaking at 5 billion per cent, marked one of the most severe currency crashes in history.
Banks in Zimbabwe have been converting the previous national currency, the Zimbabwe dollar, into ZiGs, aiming to promote simplicity, certainty, and predictability in monetary and financial matters.
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