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By Judith Matanire
In a significant move aimed at stabilizing the economy, the government has announced the launch of a new currency, “ZiG,” backed by reserves and royalties. This development comes as part of the Monetary Policy Highlights released by the authorities, outlining key strategies to address economic challenges.
Under the new policy, the existing Zimbabwean dollar (ZWL) currencies will be converted to ZiG, which is set to circulate alongside other currencies in the country. Despite the introduction of ZiG, the multi-currency system will remain in place until 2030, in compliance with existing legislation.
The notes are coming in denominations of 1, 2, 5, 10, 50, 100 and 200. Coins for half and a quarter ZiG. The currency has been printed and will be available from next week Monday.
1 ZiG is equal to 6 US cents.
All banks are to accept old notes for the next 21 days.
“Those with Zimbabwe dollar notes should deposit them in banks starting Monday, but those with ZWL100,000 worth of notes have to explain the source and why they were keeping it.” said RBZ governor
This move is expected to mitigate the effects of inflation and currency fluctuations that have plagued the economy in recent years.
Furthermore, all financial obligations, including debts and contracts, will be converted to ZiG, aligning with the government’s efforts to streamline the transition to the new currency system. This conversion process is anticipated to facilitate a smoother transition for businesses and individuals alike.
The announcement of ZiG marks a pivotal moment in Zimbabwe’s economic landscape, signaling the government’s commitment to implementing effective monetary policies to foster growth and stability. However, the success of the new currency will depend on its acceptance by the public and its ability to maintain value over time. *Nhau/Indaba*
