A year after Zimbabwe launched the Zimbabwe Gold (ZiG) currency to restore confidence and curb market distortions, signs of cautious progress are beginning to emerge.
The latest figures from the Zimbabwe National Statistics Agency (ZimStat) show that the annual inflation rate increased to 85.70 percent.
The recent release is the first time Zimstat has given a year-on-year local currency inflation rate since authorities launched the ZiG currency. The authorities launched the ZiG currency when the year-on-year inflation rate was 57.50 percent in April 2024.
What is ZiG currency?
The ZiG is Zimbabwe’s sixth attempt at a stable currency in less than 20 years. According to the Reserve Bank of Zimbabwe (RBZ), “ZiG is a digital currency backed by physical gold reserves, designed to provide an alternative store of value for citizens.” The authorities expected this currency to stabilise the economy by offering a more reliable currency option, supported by the physical backing of gold.
Has the currency been a success?
The latest figures show that monthly inflation edged up by 0,6 percent in April 2025, after a brief dip into deflation in March. However, the annual inflation rate highlights ongoing economic challenges.
According to Bloomberg, since the ZiG’s introduction, the authorities have struggled to convince Zimbabweans that the ZiG will succeed, and its value has slumped. The ZiG is not catching on in the informal sector, which is the engine room of Zimbabwe’s economy, making up around 80% of it.
Most of these small traders and businesses just prefer to stick with US dollars and South African Rands. They see those currencies as more reliable than the ZiG right now.
Financial expert Jacob Chincinza believes that where people accept ZiG, it is often due to legal mandates rather than market preference.
“Government regulations have compelled certain formal-sector entities to recognize ZIG for transactions, but this has not translated into voluntary adoption. Businesses frequently impose higher prices for those using ZiG to manage exchange rate risks, further discouraging its use,” he noted.
Do you think Zimbabwe needs to try another currency?
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