It has been suggested that GBDT (digital token) be merged into this article. (Discuss) Proposed since April 2024. |
ZiG | |
---|---|
ISO 4217 | |
Unit | |
Plural | ZiGs |
Symbol | ZiG |
Denominations | |
Banknotes | 1, 2, 5, 10, 20, 50, 100, 200 ZiG |
Coins | Quarter ZiG, Half ZiG [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]
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 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).
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 will come several forms: 1 ZiG, 2 ZiG, 5 ZiG. They will be introduced on 30 April 2024, along with the banknotes. [17] [18]
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 ]
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]
All banks and financial institutions were instructed to convert all ZWL balances, obligations and accounts to the new currency, ZiG. [2]
The economy of Zimbabwe is a gold standard based economy. Zimbabwe has a $44 billion dollar informal economy in PPP terms which translates to 64.1% of the total economy. Agriculture and mining largely contribute to exports. The economy is set to reach $66 billion by end of 2023, 88% increase in forecast from $35 billion.
The baht is the official currency of Thailand. It can be divided into 100 satang. In which, the baht is formerly divided into 8 feuang and 64 att .The issuance of currency is the responsibility of the Bank of Thailand. SWIFT ranked the Thai baht as the 10th-most-frequently used world payment currency as of December 2023.
The Mexican peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 16th–19th century Spanish dollar, most continuing to use its sign, "$".
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt.
The cedi is the unit of currency of Ghana. It is the fourth historical and only current legal tender in the Republic of Ghana. One Cedi is divided into one hundred Pesewas (Gp).
The bolívar is the official currency of Venezuela. Named after the hero of South American independence Simón Bolívar, it was introduced following the monetary reform in 1879, before which the venezolano was circulating. Due to its decades-long reliance on silver and gold standards, and then on a peg to the United States dollar, it was considered among the most stable currencies and was internationally accepted until 1964, when the government decided to adopt a floating exchange rate instead.
The Reserve Bank of Zimbabwe is the central bank of Zimbabwe and is headquartered in Harare.
Gideon Gono is a former Governor of the Reserve Bank of Zimbabwe (RBZ), serving from 2003 to 2013, and is the former CEO of the CBZ Bank Limited.
Metallism is the economic principle that the value of money derives from the purchasing power of the commodity upon which it is based. The currency in a metallist monetary system may be made from the commodity itself or it may use tokens redeemable in that commodity. Georg Friedrich Knapp (1842–1926) coined the term "metallism" to describe monetary systems using coin minted in silver, gold or other metals.
Hyperinflation in Zimbabwe is an ongoing period of currency instability in Zimbabwe which, using Cagan's definition of hyperinflation, began in February 2007. During the height of inflation from 2008 to 2009, it was difficult to measure Zimbabwe's hyperinflation because the government of Zimbabwe stopped filing official inflation statistics. However, Zimbabwe's peak month of inflation is estimated at 79.6 billion percent month-on-month, 89.7 sextillion percent year-on-year in mid-November 2008.
The United States dollar is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color.
The banknotes of Zimbabwe were physical forms of Zimbabwe's first four incarnations of the dollar, from 1980 to 2009. The banknotes of the first dollar replaced those of the Rhodesian dollar at par in 1981, one year after the proclamation of independence. The Reserve Bank of Zimbabwe issued most of the banknotes and other types of currency notes in its history, including the bearer cheques and special agro-cheques that circulated between 15 September 2003 and 31 December 2008: the Standard Chartered Bank also issued their own emergency cheques from 2003 to 2004.
The Zimbabwean dollar was the name of four official currencies of Zimbabwe from 1980 to 12 April 2009. During this time, it was subject to periods of extreme inflation, followed by a period of hyperinflation.
The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2019. The coins are supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by Afreximbank. To date coins worth US$15 million have been struck out of the total $50 million available. The coins were first issued in denominations of 1, 5, 10, and 25 cents and are pegged to the corresponding values in U.S. dollars. A 50 cents bond coin was released in March 2015.
Fidelity Printers and Refiners (FPR) is Zimbabwean security printing and gold refinery company wholly owned by the Reserve Bank of Zimbabwe. The company was established in 1966. FPR operates from a printing and gold refinery plant located in Msasa Industrial area in Harare and a coin minting facility in Bulawayo.
John Panonetsa Mangudya is a former governor of the Reserve Bank of Zimbabwe. He was appointed in March 2014 by the then Zimbabwean president, Robert Mugabe, and began his tenure as governor on 1 May that year. His second 5 year term ended on 28 March 2024. He succeeded Gideon Gono as the governor of Zimbabwe's central bank and became the nation's 6th substantial exchequer.
Zimbabwean bond notes are a form of banknote in circulation in Zimbabwe. Released by the Reserve Bank of Zimbabwe, the notes were stated to not be a currency in itself but rather legal tender near money pegged equally against the U.S. dollar. In 2014, prior to the release of bond notes, a series of bond coins entered circulation.
The Zimbabwean dollar, also known as the Zimdollar or Real Time Gross Settlement (RTGS) dollar, was the currency of Zimbabwe from February 2019 to April 2024. It was the only legally permitted currency for trade in Zimbabwe from June 2019 to March 2020, after which foreign currencies were legalised again.
The Mosi-oa-Tunya is a gold coin introduced in Zimbabwe in 2022 in the context of rising inflation.
Gold-backed digital token, abbreviated as GBDT is an investment instrument used in Zimbabwe. It was formerly known as ZiG, but its name was taken by a newly created gold backed currency, thus renaming to GBDT. The digital coins are not loanable.
"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 |