JUST IN: Reserve Bank of Zimbabwe Introduces New Currency “Zimbabwe Gold (ZiG)
The Reserve Bank of Zimbabwe (RBZ) has made a significant announcement regarding the country’s currency landscape. Effective from this Friday, a new structured currency named the “Zimbabwe Gold (ZiG)” will be introduced, as revealed by RBZ Governor Dr. John Mushayavanhu during the presentation of the 2024 Monetary Policy Statement (MPS) this afternoon.
Governor Mushayavanhu emphasized that the introduction of ZiG aims to establish a solid and stable currency for the nation. Key highlights from the MPS presentation include:
- Structured Currency Backed by Reserves and Royalties: ZiG will be supported by reserves and royalties, ensuring its stability and value.
- Conversion of ZWL Dollar Currencies to ZiG: Existing ZWL dollar currencies will be converted to ZiG, marking a transition to the new currency system.
- Parallel Circulation with Other Currencies: ZiG will circulate alongside other currencies, maintaining a multi-currency system.
- Continuation of Multi-Currency System until 2030: The MPS adheres to the law, maintaining the multi-currency system until 2030.
- Conversion of Obligations to ZiG: All financial obligations will be converted to ZiG, aligning with the new currency framework.
- Acceptance of Old Notes by Banks: Banks are mandated to accept old notes for the next 21 days, facilitating a smooth transition for the public.
- Denominations of ZiG Notes: ZiG notes will be issued in denominations of 1, 2, 5, 10, 20, 100, and 200.
- Exchange Rate: The initial exchange rate for 1 ZiG is set at 6 US cents, providing clarity on the currency’s initial valuation.
The introduction of ZiG signifies a strategic move by the RBZ to address currency stability and bolster economic confidence. It is anticipated that this structured currency framework will pave the way for a more resilient financial environment in Zimbabwe.
