It has been suggested that GBDT (digital token) be merged into this article. (Discuss) Proposed since April 2024. |
ZiG | |
---|---|
ISO 4217 | |
Code | None |
Unit | |
Plural | ZiGs |
Symbol | ZiG |
Denominations | |
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 |
The Zimbabwe Gold (ZiG) has been 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. [3] [4] [5] 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. [6] Annual inflation in Zimbabwe hit 55.3% in March 2024. [7]
Although fractional denominations exist, the ZiG has no formal subdivisions. Cents are used by the Zimbabwe Stock Exchange, each indicating 1⁄100 of a ZiG.
The ZiG currency was announced on 5 April 2024, taking the name from ZiG digital tokens, which are now available as GBDT. [8] The ZiG is Zimbabwe's sixth attempt since 2008 at creating a new currency that will make it independent of the US dollar. [9]
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. [10] [11] As of March 2024, 80% of all transactions in Zimbabwe were made in US dollars. [12] The government and the central bank expect the use of ZiG to gradually increase in the country. Companies are required to pay 50% of their quarterly taxes in ZiG. [13] [14]
The Reserve Bank of Zimbabwe over the weekend of 6 April to 7 April 2024 released the currency features.[ citation needed ]
Banknotes 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. [15] [4]
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).
Value | Dimensions | Main colour | Obverse | Reverse | Watermark | Date of | Ref. | |||
---|---|---|---|---|---|---|---|---|---|---|
printing | issue | |||||||||
1 ZiG | 155 × 65 mm | Blue | Domboremari with trees | Liquid gold being moulded on top of a stack of 12 gold bars | Zimbabwe Bird and "RBZ" | 2024 | 8 April 2024 | [16] | ||
2 ZiG | 155 × 65 mm | Green | ||||||||
5 ZiG | 155 × 65 mm | Pink | ||||||||
10 ZiG | 155 × 65 mm | Navy blue | ||||||||
20 ZiG | 155 × 65 mm | Peach and green | ||||||||
50 ZiG | 155 × 65 mm | Brown | ||||||||
100 ZiG | 155 × 65 mm | Olive green | ||||||||
200 ZiG | 155 × 65 mm | Red | ||||||||
For table standards, see the banknote specification table. |
The coins came in several forms: 1 ZiG, 2 ZiG, 5 ZiG. They will be introduced on 30 April 2024, along with the banknotes. [17] [18]
There are also coins for 1/10 ZiG, 1/4 ZiG, and 1/2 ZiG as well.
The Zimbabwean dollar (ZWL) lost about 32% value on interbank in a 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. [19] [20] 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. [21] [22] Zimbabweans were given 21 days to convert their cash into ZiG. [23]
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. [24]
All banks and financial institutions were instructed to convert all ZWL balances, obligations and accounts to the new currency, ZiG. [2]
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"Settlement of any transaction or payment for goods and services in foreign currency, shall ... be valid until the 31st December, 2030," reads the gazette.
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.
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 |