Keeping in Touch with African Affairs: Zimbabwean Currency, Zig, Now Official

Ever since Zimbabwe gained independence from British colonial rule in April 1980, the country has experienced both positive and negative developments. The Zimbabwe Dollar, which was introduced at the time of independence, has undergone significant changes over the years. Currently, it is in its 6th series, with each new series replacing the previous one due to hyperinflation that devalued the currency. To make the currency more manageable, each previous series was redenominated by removing zeros.

The Zimbabwe Dollar series timeline- 1980 to date

[Series 1 – 1980 to 1994] [Series 2 – 1994 to 2003] [Series 3 – August 1 2006 to July 31, 2008] [Series 4 – August 1 to February 2, 2009] [ Series 5 – November 2016 – April 2024] [ Series 6 – April 2024 to-date].

Where are we now with the Zim currency in 2024?

  • Zimbabwe’s official medium of exchange, the gold-backed Zig, has been mandated for use by financial and public institutions.
  • All government entities are required to adopt the Zig for transactions involving goods and services.
  • Physical coins and banknotes of the Zig are now in circulation, following the electronic launch in April that phased out the Zimbabwe dollar.
  • The Zig is supported by Zimbabwe’s gold, precious metal, and foreign currency reserves, providing a stable foundation for the new currency.
  • With the official trading rate set at 13 USD, the government aims to address the country’s longstanding economic challenges, including persistent inflation and the impact of Western sanctions.

Source: African Stream- YouTube

The Zimbabwe Gold (Zig) currency, backed by gold, has officially been declared as the primary medium of exchange in the country. Finance Minister Mthuli Ncube issued a directive on May 7 instructing all banks and government entities to conduct transactions and payments for goods and services using the Zig. The Central Bank of Zimbabwe introduced the Zig on April 5 to combat hyperinflation. The currency is supported by a combination of foreign currencies, gold, and precious minerals amounting to approximately US$285.

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