The Zimbabwe Gold (ZiG; code: ZWG)[3] is the official currency of Zimbabwe since 8 April 2024,[2] backed by US$575 million worth of hard assets: foreign currencies, gold, and other precious metals.[4][5][6] It replaced the Zimbabwean dollar, which suffered from rapid depreciation, with the official exchange rate surpassing 30,000 Zimbabwean dollars per U.S. dollar on 5 April 2024, whilst the parallel market rate reached 40,000 per U.S. dollar.[7] Annual inflation in Zimbabwe hit 55.3% in March 2024.[8]
ZiG | |
|---|---|
 New coins | |
| ISO 4217 | |
| Code | ZWG (numeric: 924) |
| Subunit | 0.01 |
| Unit | |
| Plural | ZiG |
| Symbol | ZiG |
| Denominations | |
| Subunit | |
| 1⁄100 | cent notionally only; cents are not used in any denomination |
| Banknotes | ZiG10, ZiG20, ZiG50, ZiG100, ZiG200 |
| Coins | ZiG1⁄10, ZiG1⁄4, ZiG1⁄2, ZiG1, ZiG2, ZiG5[1] |
| Demographics | |
| Date of introduction | 8 April 2024[2] |
| Replaced | Zimbabwean dollar |
| User(s) |  Zimbabwe |
| Issuance | |
| Central bank | Reserve Bank of Zimbabwe |
| Website | www |
Although not used in a denomination, it is notionally divided into 100 cents, which were first used by the Zimbabwe Stock Exchange before the currency had an ISO code. Cents were officially recognized by the Reserve Bank of Zimbabwe when a currency code for the Zimbabwe Gold was introduced in June 2024.[9]
Background
editThe ZiG currency was announced on 5 April 2024, taking the name from ZiG digital tokens, which are now available as GBDT.[10] The ZiG is Zimbabwe's sixth attempt since 2008 at creating a new currency that will make it independent of the US dollar.[11]
Zimbabwe has a multi-currency system, introduced in 2009 after the hyperinflation of the Zimbabwean dollar. In addition to the ZiG, foreign currencies are also legal tender.[12][13] As of April 2024, the value of the dollar had decreased by 80%. At that time, U.S. dollars accounted for four-fifths of all transactions. The ZiG began trading on April 8 at an exchange rate of 13.56 ZiG to 1 USD. Since its launch, the proportion of transactions conducted in USD has declined from 85% to 70%.[14] The government and the central bank expect the use of ZiG to increase in the country gradually. Companies are required to pay 50% of their quarterly taxes in ZiG.[15][16]
Features
editThe Reserve Bank of Zimbabwe, over the weekend of 6 April to 7 April 2024, released the currency features.[citation needed]
Denominations
editBanknotes
editBanknotes of Zimbabwe Gold were announced in eight denominations: 1, 2, 5, 10, 20, 50, 100, and 200 ZiG; however, a later announcement stated that the 1, 2, and 5 ZiG denominations would instead be issued in coin form. They began circulating on 30 April 2024.[17][5]
The ZiG notes are made from cotton paper, have the Zimbabwe Bird as their watermark, and are all equal in size, measuring 155 mm × 65 mm (6.1 in × 2.6 in).
According to a NewsDay article dated 31 May 2024, Governor John Mushayavanhu said that the Reserve Bank of Zimbabwe will not introduce 50- or 200-zig notes anytime soon as it fears that the bigger notes will fuel inflation. The notes have been printed and delivered. "We have introduced most of the cash denominations that we said we were going to. We have got ZiG1, ZiG2, ZiG5, ZiG10 and ZiG20 in circulation now," said Mushayavanhu. Only the 10- and 20-ZiG denominations have been confirmed to be issued as notes; the lower denominations are presumed to be coins. There was no word on the fate of the 100 ZiG note.[1]
| Value | Dimensions | Main colour | Obverse | Reverse | Watermark | Date of | Ref. | ||
|---|---|---|---|---|---|---|---|---|---|
| printing | issue | ||||||||
| 1 ZiG | 155 × 65 mm | Blue | Balancing rocks of Zimbabwe with trees | Liquid gold being moulded on top of a stack of 12 gold bars | Zimbabwe Bird and "RBZ" | 2024 | not issued | [18] | |
| 2 ZiG | 155 × 65 mm | Green | |||||||
| 5 ZiG | 155 × 65 mm | Pink | |||||||
| 10 ZiG | 155 × 65 mm | Navy blue | 30 April 2024 | ||||||
| 20 ZiG | 155 × 65 mm | Peach and green | 13 May 2024 | ||||||
| 50 ZiG | 155 × 65 mm | Brown | TBA | ||||||
| 100 ZiG | 155 × 65 mm | Olive green | TBA | ||||||
| 200 ZiG | 155 × 65 mm | Red | TBA | ||||||
| For table standards, see the banknote specification table. | |||||||||
Coins
editThe coins came in several forms: 1 ZiG, 2 ZiG, 5 ZiG. They were introduced on 30 April 2024, along with the banknotes.[19][20]
There are plans to introduce also coins for 1⁄10 ZiG, 1⁄4 ZiG, and 1⁄2 ZiG as well.
Banknotes of the same denominations will not be released.
Conversions
editExchange rates
editThe Zimbabwean dollar (ZWL) lost about 32% value on interbank in two-day trading, moving from 22,950 to 33,903 per U.S. dollar. The conversion to ZiG was based on gold price and swap rate.[21][22] On a press release dated 6 April 2024, the Reserve Bank of Zimbabwe announced that ZWL would be converted to ZiG at an exchange rate of 2498.7242 ZWL for one ZiG.[23][24] Zimbabweans were given 21 days to convert their cash into ZiG.[25]
The ZiG started trading on 8 April 2024 with an exchange rate of 13.56 ZiG per US dollar and was subsequently allowed to freely float.[26]
On 27 September 2024, the RBZ devalued the ZiG by 42.55% against the US dollar.[27] As a result of the currency devaluation, in October 2024, consumer prices went up by 37.2% in ZiG terms, compared to just 0.7% in USD terms during the same period.[28]
Zimswitch and banks
editAll banks and financial institutions were instructed to convert all ZWL balances, obligations, and accounts to the new currency, ZiG.[2]
See also
editReferences
edit- ^ "Zimbabwe introduces new 'ZiG' currency - CAJ News Africa". 6 April 2024.
- ^ a b c "Zimbabwe Replaces Battered Dollar With New Gold-Backed Currency Called ZiG". Bloomberg.com. 2024-04-05. Retrieved 2024-04-05.
- ^ "ISO 4217 Amendment Number 177" (PDF). SIX Interbank Clearing. Zurich: SIX Group. 20 June 2024. Archived from the original (PDF) on 20 June 2024. Retrieved 20 June 2024.
- ^ Chikandiwa, Tafadzwa Mhlanga and Harriet. "US$575m war chest to anchor new currency". The Zimbabwe Independent. Retrieved 2024-04-05.
- ^ a b "Zimbabwe Launches New Gold-backed Currency". AFP. 5 April 2024 – via Barrons.
- ^ Agbetiloye, Adekunle (2024-04-05). "Zimbabwe's new gold-backed currency ZiG to replace its dollar in April". Business Insider Africa. Retrieved 2024-04-05.
- ^ "Zimbabwe introduces new gold-backed currency to tackle inflation". Al Jazeera. 5 April 2024. Archived from the original on 8 April 2024. Retrieved 6 April 2024.
- ^ Mutsaka, Farai (5 April 2024). "Zimbabwe introduces new currency as depreciation and rising inflation stoke economic turmoil". The Associated Press. Archived from the original on 7 April 2024. Retrieved 8 April 2024.
- ^ Mandivengerei, Paidashe (2024-06-26). "RBZ changes ZiG currency code to ZWG as International Standards Organisation approves certification". NewZimbabwe.com. Retrieved 2024-10-29.
- ^ "Zimbabwe gets new currency: ZiG, to restore stability". The Chronicle. 6 April 2024. Archived from the original on 8 April 2024. Retrieved 6 April 2024.
- ^ Huileng, Tan (9 April 2024). "Zimbabwe just introduced a new gold-backed currency in an attempt to fight inflation and wean off the US dollar". Business Insider. Archived from the original on 12 April 2024. Retrieved 12 April 2024.
- ^ "Zimbabwe extends multi-currency system to 2030". Reuters. 27 October 2023. Archived from the original on 11 November 2023. Retrieved 24 March 2024.
"Settlement of any transaction or payment for goods and services in foreign currency, shall ... be valid until the 31st December, 2030," reads the gazette.
- ^ Chingono, Nyasha (5 April 2024). "Zimbabwe launches gold-backed currency to replace battered local dollar". Reuters. Archived from the original on 5 April 2024. Retrieved 5 April 2024.
The new currency - called Zimbabwe Gold (ZiG) - will circulate alongside foreign currencies, central bank governor John Mushayavanhu told a press conference in the capital Harare.
- ^ Bull, Alister; Ndlovu, Ray (2024-08-08). "All About ZiG, Zimbabwe's Latest Shot at a Stable Currency". Bloomberg News. Retrieved 2024-08-09.
- ^ "Why ZiG cannot immediately replace USD transactions". The Zimbabwe Mail. 12 April 2024. Archived from the original on 12 April 2024. Retrieved 12 April 2024.
- ^ Ndlovu, Ray (12 April 2024). "Zimbabwe's Central Bank Chief Sees Deflation Risk From Strong ZiG". BNN Bloomberg. Archived from the original on 12 April 2024. Retrieved 12 April 2024.
- ^ "ZiG Begins Trading as Zimbabwe Banks Struggle With the Switch". Bloomberg.com. 2024-04-08. Retrieved 2024-04-08.
- ^ "ZiG Posters" (PDF). Reserve Bank of Zimbabwe. Harare. 6 April 2024. Archived from the original (PDF) on 8 April 2024. Retrieved 8 April 2024.
- ^ "RBZ to introduce ZiG 1 to 5 in coins – DailyNews". dailynews.co.zw. Retrieved 2024-04-27.
- ^ Matambanadzo, Chris (2024-04-26). "ZiG Currency Revamp: RBZ Governor Announces Major Changes to Banknotes and Coins, Unveils New Denominations". iHarare News. Retrieved 2024-04-27.
- ^ "Zimbabwe new currency". Chronicles. Retrieved 2024-04-06.
- ^ "Zimbabwean dollar balances shrink in value amid ZiG currency launch". www.thezimbabwean.co. Retrieved 2024-04-06.
- ^ "Press Statement" (PDF). Reserve Bank of Zimbabwe. 6 April 2024. Archived from the original (PDF) on 9 April 2024. Retrieved 9 April 2024.
- ^ "RBZ satisfied with currency switch progress". The Herald. 8 April 2024. Archived from the original on 8 April 2024. Retrieved 8 April 2024.
- ^ Taruvinga, Mary (5 April 2024). "Zimbabwe Launches New Gold-backed Currency". Barron's. Archived from the original on 5 April 2024. Retrieved 8 April 2024.
- ^ Ndlovu, Ray (8 April 2024). "ZiG Debuts in Zimbabwe's Sixth Effort at a Revamped Currency". Bloomberg. Archived from the original on 9 April 2024. Retrieved 9 April 2024 – via Yahoo! Finance.
- ^ "Zimbabwe currency: Bank knocks 40% off value of gold-backed Zig". www.bbc.com. Retrieved 2024-10-08.
- ^ Zimbabwe, New (2024-10-26). "Statistics agency notes soaring ZWG inflation rate, now pegged at 37.2%". NewZimbabwe.com. Retrieved 2024-10-29.
External links
edit| Preceded by: Zimbabwean dollar Reason: inflation Ratio: 2498.7242 ZWL = 1 ZiG |
Currency of Zimbabwe 8 April 2024 – Note: Part of a multi-currency system |
Succeeded by: Current |