From ZWL to ZiG: Zimbabwe Announces New Gold-Backed Currency – Here Is What You Need To Know

Zimbabwe Unveils New Currency, ZiG, in Bold Monetary Overhaul

Zimbabwe has introduced a new currency, the ZiG, as announced by the new Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, in his long-awaited 2024 Monetary Policy Statement. The introduction of the ZiG, which stands for “Zimbabwe Gold,” marks a significant shift in the nation’s financial landscape.

A New Dawn for Zimbabwe’s Economy

The new currency comes in denominations of 1, 2, 5, 10, 50, and 100, with coins for half and a quarter ZiG.

“With effect from today, banks shall convert the current Zimbabwe dollar balances to ZiG,” stated Governor Mushayavanhu.

Zimbabweans have been given a 21-day window to exchange their old ZWL notes for the new currency. “I don’t believe in taking people’s money. The ZiG will circulate with other currencies in the basket,” he added.

Transitioning to ZiG: What You Need to Know

The interbank rate of April 5, 2024, will be used to convert Zimbabwe dollar balances to ZiG. Starting Monday, 8 April,  citizens are encouraged to deposit their Zimbabwe dollar notes in banks, with those holding ZWL100,000 or more required to explain the source and reason for holding such huge amounts.

A Gold-Backed Future

One of the most notable features of the ZiG is its backing by gold, a move aimed at providing a stable and secure foundation for the currency. The conversion rate from the Zimdollar to the ZiG has been set at Z$1 = 13.5686 ZiG, calculated by dividing the current ZWL rate by the day’s gold price. This gold-backed approach is expected to enhance the currency’s credibility and attractiveness to both local and international investors.

Maintaining a Multicurrency System

Despite the introduction of the ZiG, Governor Mushayavanhu reassured the public that the multicurrency system would remain in place. “The US dollar remains legal tender. The ZiG will circulate alongside other currencies,” he stated, highlighting the continued flexibility and inclusivity of Zimbabwe’s monetary policy.

The introduction of the ZiG marks a hopeful new chapter in Zimbabwe’s economic story. With its gold backing and strategic implementation, the ZiG currency aims to bring much-needed stability and confidence to the nation’s financial system, paving the way for sustainable economic growth and prosperity.

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The post From ZWL to ZiG: Zimbabwe Announces New Gold-Backed Currency – Here Is What You Need To Know appeared first on iHarare News.