Zimbabwe's Gold-Backed Currency Surges Amid Market Skepticism

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ZIMBABWE'S newly launched gold-backed currency, known as the Zimbabwe Gold (ZiG), has hit the ground running, gaining 1.1 percent against the U.S. dollar in its first week of trading.

ZIMBABWE'S newly launched gold-backed currency, known as the Zimbabwe Gold , has hit the ground running, gaining 1.1 percent against the U.S. dollar in its first week of trading.

Despite initial market confusion surrounding the new currency, most banks, traders, and businesses successfully converted their old Zimbabwe dollar balances to ZiG. This sets the stage for ZiG to circulate alongside other foreign currencies under Zimbabwe's multi-currency regime, which will remain in place until 2030.

"The total 285 million U.S. dollars represents more than three times cover for the ZiG currency being issued," Mushayavanhu said, adding that the central bank commits to maintaining a steady buffer of foreign reserves to ensure full coverage for the currency at all times. Around 80 percent of business transactions in the country are already in U.S. dollars. Mushayavanhu aims for ZiG to bring stability and address the currency crisis.

"Change is here with the new currency. We must give the new governor a fighting chance," Chanakira stated, addressing public doubts about the governor's ability to handle the currency crisis.

 

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