Zimbabwe to Replace US Dollar with Gold-Backed ZiG as Exclusive Legal Tender
Zimbabwe’s ruling party, Zanu-PF, has passed a resolution to make the gold-backed ZiG currency the country’s sole legal tender, moving to phase out the US dollar.
The resolution, finalized at Zanu-PF’s annual conference, mandates the government to “expedite dedollarization efforts” and prioritize the ZiG currency, though no specific timeline was provided.
The ZiG, short for Zimbabwe Gold, marks Zimbabwe’s sixth currency shift in 15 years as an alternative to the US dollar, which remains legal tender until at least 2030 under current law. President Emmerson Mnangagwa has hinted at accelerating this timeline.
Since its introduction in April, the ZiG has faced challenges, including a 43% devaluation in September, which led to renewed public reliance on the dollar.
Oxford Economics noted the devaluation weakened public confidence, further encouraging dollar use. The International Monetary Fund also warned that the ZiG cannot alone resolve Zimbabwe’s broader economic issues, such as high inflation and limited trust in fiscal authorities.
Zanu-PF’s resolution calls for “robust measures to strengthen the purchasing power of the ZiG.” On Monday, the ZiG traded officially at 28.37 per dollar, while parallel market rates ranged from 40 to 50 per dollar, according to ZimPriceCheck.com.
