RBZ Launches Zimbabwe Gold (ZiG) Currency Backed by Gold and Foreign Reserves

Tags: International News

The Reserve Bank of Zimbabwe (RBZ) has launched a new currency called "Zimbabwe Gold (ZiG)," which is backed by gold and foreign currencies, aiming to replace the local currency, Zimbabwe dollars (ZW$) Real Time Gross Settlement (RTGS) dollar.

An Overview of the News

• RBZ has instructed banks to convert existing Zimbabwe dollar balances into ZiG starting from April 5, 2024.

• Circulation of ZiG notes and coins will commence on April 30, 2024.

• Banks will continue accepting ZW$ deposits for 21 days after April 5, 2024.

About Zimbabwe Gold (ZiG):

• ZiG is backed by a combination of foreign currency and precious metals, predominantly gold.

• The initial exchange rate of ZiG is set at 13.56 ZiG per US dollar (USD).

• Denominations of ZiG notes and coins include 1ZiG, 2ZIG, 5ZIG, 10ZIG, 20Zig, 50ZIG, 100ZIG, and 200ZİG.

Background on Currency and Economic Context:

• Zimbabwe adopted the US dollar in 2009 to combat hyperinflation.

• The new Zimbabwe dollar (Real-Time Gross Settlement (RTGS) dollar) was introduced in 2019.

• RTGS dollar experienced a significant devaluation, losing 75% of its value in 2024 and nearly 100% against the US dollar in 2023.

About Zimbabwe:

• President - Emmerson Mnangagwa

• Capital - Harare

• Currency - Zimbabwe Gold (ZiG)