By: Natasha Archary

Zimbabwe has introduced a new gold-backed currency, the ZiG which has replaced the Zim Dollar and has started trading.
In a bid to stabilize the country’s economy, the Zimbabwe government is hoping to improve the financial crises by doing away with the depreciating Zim Dollar.
The Zim Dollar has, since January lost a further 70% in value, making it one of the weakest global currencies.
Independent Economist, Dr. Prosper Chitambara joins Gugulethu Mfuphi on Kaya Biz to discuss how the introduction of the new Zimbabwean currency will change the financial landscape of the country, both locally and internationally.
This is the sixth attempt by Zimbabwe to resuscitate the country’s economy, and some of the previous currencies included a bond note, RTGS and the Zim Dollar to name a few.
“Since 2019 the annual inflation rate was 255.3%, in 2020 554.2%, 2021 the average annual inflation rate was 144%, 2022 it was 184% and the current inflation rate as of March is 55.3%.
So, it’s been a major challenge that has largely been because of the unsustainable growth, money supply and also the exchange rate depreciation.
Government is obviously hoping to break a change from the past mistakes concerning the currency and is trying to launch the economy on a more sustainable trajectory.”
The Zimbabwe Gold or ZiG is sett at a current value of 13.56 ZiGs per US$1 but rates are expected to change with market forces.
Listen to the conversation on Kaya Biz:
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