Zimbabwe Plans Transition to Gold-Backed Currency ZiG by 2030
Zimbabwean President Emmerson Mnangagwa has outlined plans for ZiG, the nation’s new gold-backed currency, to replace the US dollar as the sole legal tender before the 2030 deadline, effectively phasing out the current multicurrency system, Bloomberg reported.
Last October, Zimbabwe extended its multi-currency system, anchored by the US dollar, until 2030 to mitigate concerns over upcoming currency policy changes.
Speaking at an event in Mutare on Thursday, Mnangagwa emphasized the importance of ZiG’s adoption nationwide:
“In two years’ time — in fact, two years is too far — we will get to the point where when I see that the ZiG is available in every part of the country,” Mnangagwa said. “We are getting there. When you go to the shops carrying US dollars, they will refuse to accept them.”
ZiG, launched in early April, marks Zimbabwe’s sixth attempt in 15 years to establish a stable local currency. Backed by 2.5 tons of gold and $100 million in foreign-currency reserves held by the central bank, the new currency will refrain from further issuance unless adequately backed by reserves, as affirmed by the Central Bank governor.
On Friday, ZiG was trading at 13.69 per US dollar, recovering from a recent decline, according to data from the central bank’s website. Officials expressed confidence in ZiG’s strength against the dollar, signaling no immediate need for intervention.
Historically, Zimbabweans turned to US dollars amid instability of the defunct Zimbabwe dollar, using them for daily essentials like food, medicines, and fuel.
