Zimbabwe Adopts The Gold-backed ‘ZIG’ Currency In Place Of The Native Dollar

ZIMBABWE introduces ‘ZIG,’ a currency backed by gold, replacing the native dollar.

Zimbabwe has made a big shift from the faltering Zimbabwean Dollar by introducing the new ZiG, a currency backed by gold.

Today, Monday, April 8, was the planned launch day. The initial exchange rate was established at 13.56 ZIG for every US dollar.

Governor of the Zimbabwean Central Bank John Mushayavanhu made the announcement in Harare, emphasizing the necessity of a strong national currency backed by gold and other precious metals as well as foreign currencies.

This change comes after years of economic unrest during which Zimbabwe's currency significantly declined in value.

This problem is intended to be addressed by the new currency, which is supported by a broad range of assets to promote stability.

Mushayavanhu emphasized that Zimbabwe's past attempts to stabilize its currency have been beset by the habit of excessive money production, which has shown to be unproductive.

He pledged that under his direction, prudent monetary measures will be implemented.

He said, “We want a solid and stable national currency in this country. It does not help to print money. Certainly, under my watch it is not going to happen.”

The announcement of ZiG coincides with the current depreciation of the Zimbabwean Dollar, which has fallen by around 80% in official markets this year, making it one of the weakest currencies in the world.

The US dollar is now the main form of payment for the majority of transactions in Zimbabwe as a result.

Finance Minister Mthuli Ncube had stated earlier in the year that President Emmerson Mnangagwa's administration intended to establish a more structured currency, maybe backed by gold.

The central bank's monetary policy statement was postponed since this plan needed to be adjusted.