Zimbabwe Gold

Last updated
Zimbabwe Gold
ZiG
ISO 4217
Unit
PluralZiGs
Symbol ZiG
Denominations
Banknotes1, 2, 5, 10, 20, 50, 100, 200 ZiG
CoinsQuarter ZiG, Half ZiG [1]
Demographics
Date of introduction8 April 2024;20 days ago (2024-04-08) [2]
Replaced Zimbabwean dollar
User(s)Flag of Zimbabwe.svg  Zimbabwe
Issuance
Central bank Reserve Bank of Zimbabwe
Website www.rbz.co.zw

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]

Contents

Background

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]

Features

The Reserve Bank of Zimbabwe over the weekend of 6 April to 7 April 2024 released the currency features.[ citation needed ]

Denominations

Banknotes

Banknotes of Zimbabwe Gold will be introduced in eight denominations: 10, 20, 50, 100 and 200 ZiG. They will begin 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).

2024 banknote series (signature: John Mushayavanhu, capital: Harare)
ValueDimensionsMain colourObverseReverseWatermarkDate ofRef.
printingissue
1 ZiG155 × 65 mmBlue Domboremari with treesLiquid gold being moulded on top of a stack of 12 gold bars Zimbabwe Bird and "RBZ"20248 April 2024 [16]
2 ZiG155 × 65 mmGreen
5 ZiG155 × 65 mmPink
10 ZiG155 × 65 mmNavy blue
20 ZiG155 × 65 mmPeach and green
50 ZiG155 × 65 mmBrown
100 ZiG155 × 65 mmOlive green
200 ZiG155 × 65 mmRed
For table standards, see the banknote specification table.

Coins

The coins will come several forms: 1 ZiG, 2 ZiG, 5 ZiG. They will be introduced on 30 April 2024, along with the banknotes. [17] [18]

Subdivisions

The ZiG will not have a subdivision - and will be the only currency other than the Vanuatuan vatu where this is the case.[ citation needed ]

Conversions

Exchange rates

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, will be 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]

Zimswitch and banks

All banks and financial institutions were instructed to convert all ZWL balances, obligations and accounts to the new currency, ZiG. [2]

See also

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References

  1. https://www.cajnewsafrica.com/2024/04/06/zimbabwe-introduces-new-zig-currency/
  2. 1 2 3 "Zimbabwe Replaces Battered Dollar With New Gold-Backed Currency Called ZiG". Bloomberg.com. 2024-04-05. Retrieved 2024-04-05.
  3. Chikandiwa, Tafadzwa Mhlanga and Harriet. "US$575m war chest to anchor new currency". The Zimbabwe Independent. Retrieved 2024-04-05.
  4. 1 2 "Zimbabwe Launches New Gold-backed Currency". AFP. 5 April 2024 via Barrons.
  5. 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.
  6. "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.
  7. 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.
  8. "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.
  9. 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.
  10. "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.
  11. 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.
  12. Ndlovu, Ray; Goko, Colleen (20 March 2024). "Zimbabwe Lets Currency Free-Fall While It Weighs Gold Standard". Bloomberg. Archived from the original on 24 March 2024. Retrieved 24 March 2024 via Yahoo! News.
  13. "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.
  14. 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.
  15. "ZiG Begins Trading as Zimbabwe Banks Struggle With the Switch". Bloomberg.com. 2024-04-08. Retrieved 2024-04-08.
  16. "ZiG Posters" (PDF). Reserve Bank of Zimbabwe. Harare. 6 April 2024. Archived from the original (PDF) on 8 April 2024. Retrieved 8 April 2024.
  17. "RBZ to introduce ZiG 1 to 5 in coins – DailyNews". dailynews.co.zw. Retrieved 2024-04-27.
  18. 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.
  19. "Zimbabwe new currency". Chronicles. Retrieved 2024-04-06.
  20. "Zimbabwean dollar balances shrink in value amid ZiG currency launch". www.thezimbabwean.co. Retrieved 2024-04-06.
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  24. 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.
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