RBZ Acknowledges Poor Quality of Zimbabwe Gold (ZiG) Currency, Promises Improvements

The Reserve Bank of Zimbabwe (RBZ) has admitted to the poor quality of its newly introduced currency, the Zimbabwe Gold (ZiG), and has announced plans to address the issue. Introduced on April 5, 2024, the ZiG was designed to stabilize the economy and bolster confidence in the local currency, but it has faced significant challenges since its inception.

The ZiG, reportedly backed by substantial reserves of gold and foreign currencies, failed to maintain its value and was devalued later in 2024, casting doubt on its ability to achieve its intended objectives. Compounding the currency’s struggles, complaints have poured in from the public about the ZiG notes’ durability, with reports that they tear easily and lack the longevity expected of a national currency.

Governor Mushayavanhu’s Response

In response to the public outcry, RBZ Governor John Mushayavanhu announced that plans are underway to replace the current ZiG notes with new, world-class standard versions by the third quarter of 2025. The upgraded notes aim to address durability concerns while restoring confidence in the local currency.

“The need to come up with a durable currency is of greater importance,” Mushayavanhu stated. “We have devised a strategy to ensure that the current ZiG notes are replaced by world-class notes. This initiative will address the nation’s needs, especially at a time when the public has been vocal about the current notes’ tendency to tear easily.”

Emphasizing Corporate Accountability

Governor Mushayavanhu has also called on the corporate sector to embrace the ZiG by presenting their audited financial results in the local currency. He believes this step is essential for forward planning, providing a clearer economic roadmap, and boosting confidence in the currency.

“All corporates in any part of the economy must embrace their local currency when compiling their financials,” Mushayavanhu said. “It is imperative for the corporate world to adopt this practice, as it is vital for overall planning and strengthening trust in our national currency.”

Challenges Facing the ZiG

Despite its introduction as a gold-backed currency, the ZiG has faced criticism from economists and the public alike. Limited availability, lack of full convertibility, and concerns over its ability to hold value have undermined its acceptance. Many argue that for the ZiG to succeed, it must be fully liberalized and convertible, enabling it to function effectively in both domestic and international markets.The RBZ’s commitment to upgrading the ZiG notes and encouraging corporate accountability reflects its efforts to address the challenges facing the currency. However, the long-term success of the ZiG remains uncertain, with economic stability and public trust hinging on the RBZ’s ability to implement these changes effectively.

As Zimbabwe grapples with economic uncertainty, the next steps for the ZiG will be closely watched by citizens, businesses, and economists alike. Whether the promised upgrades and corporate support can salvage the currency’s reputation and functionality will be a crucial test for the RBZ in the coming months.