The backing of the ZiG by gold, which aims to provide the currency a robust and safe foundation, is one of its most prominent aspects.
Z$1 = 13.5686 ZiG is the conversion rate between the Zimdollar and the ZiG, which is determined by dividing the current ZWL rate by the price of gold for the day.
It is anticipated that this gold-backed strategy will increase the currency’s legitimacy and appeal to both domestic and foreign investors.
Despite the introduction of the ZiG, Governor Mushayavanhu reassured the public that the multicurrency system would remain in place. “The US dollar remains legal tender. The ZiG will circulate alongside other currencies,” he stated, highlighting the continued flexibility and inclusivity of Zimbabwe’s monetary policy.
According to Statutory Instrument 60 of 2024, the legal framework for ZiG:
“The Reserve Bank shall only issue ZiG notes and coins against reserves assets actually held and managed by it, and the value of the ZiG issued and in circulation at any one time shall be anchored in and backed or covered by a composite basket of foreign currency reserves and precious metals received (mainly gold) and valuable minerals, held and maintained by the Reserve Bank in its vaults as part of the in-kind royalties.”
The introduction of the ZiG marks a hopeful new chapter in Zimbabwe’s economic story. With its gold backing and strategic implementation, the ZiG currency aims to bring much-needed stability and confidence to the nation’s financial system, paving the way for sustainable economic growth and prosperity.
ALSO READ: Zimbabwe Gold (ZiG) Currency Launches Today
Zimbabwe Pioneers Economic Growth with Introduction of ZiG Currency and Fuel Sales Negotiations
