Zimbabwe’s Ruling Party Pushes for Gold-Backed ZiG as Sole Currency
TLDR
- Zimbabwe's ruling party, Zanu-PF, adopts gold-backed ZiG currency as sole legal tender, aiming to phase out US dollars
- Introduced in April, ZiG struggles after devaluation, facing 43% drop and increased dollarization
- President Mnangagwa suggests shortening the existing timeline until 2030, IMF warns ZiG alone won't solve economic challenges
Zimbabwe’s ruling party, Zanu-PF, has passed a resolution to adopt the gold-backed ZiG currency as the country’s sole legal tender, aiming to phase out the use of US dollars. Announced at the party’s annual conference, the government was directed to “expedite efforts to de-dollarize the economy” and promote ZiG as the nation’s exclusive currency, though no timeline was provided.
The ZiG, or Zimbabwe Gold, was introduced in April, marking Zimbabwe’s sixth currency attempt in 15 years. While current law supports the use of US dollars until 2030, President Mnangagwa has suggested this timeline may be shortened.
The currency has struggled since its September devaluation, with a 43% drop spurring further dollarization. The IMF recently cautioned that ZiG alone won’t solve Zimbabwe’s economic challenges, citing high inflation and low public confidence.
You can follow Daba’s reporting on Africa on WhatsApp. Sign up here
Points clés à retenir
The move to enforce ZiG as Zimbabwe’s sole currency reflects Zanu-PF’s push for economic control amid rising challenges. Analysts question whether ZiG can anchor Zimbabwe’s economy, with IMF and Oxford Economics citing persistent inflation and eroding confidence in the currency. As Zanu-PF plans “robust measures” to boost ZiG’s value, parallel market rates remain volatile, with ZiG trading between 40 and 50 per dollar—far above the official rate of 28.37. The economic implications of phasing out the US dollar, a stable transaction currency, will heavily test Zimbabwe’s policy and monetary authorities.
Vous pensez que quelqu'un d'autre devrait voir ça ?
Investir dans cette opportunité et dans d'autres opportunités à travers l'Afrique
Téléchargez l'application daba finance sur votre mobile via
Passer à l'action.
Télécharger l'application
Entrez en partenariat avec nous
Débloquez des opportunités commerciales passionnantes et un potentiel de croissance.
Rejoindre Daba
Devenez membre de notre communauté dynamique et profitez d'avantages exclusifs.
Contactez-nous
Contactez-nous pour toute demande de renseignements, assistance ou collaboration.