Despite being introduced just five months ago, Zimbabwe’s new currency, the gold-backed ZiG, is rapidly losing value due to increased grain imports depleting foreign reserves. The currency, the country’s sixth attempt at stability in 15 years, is struggling to gain local support, with many hesitant to adopt it. Government officials remain hopeful, suggesting potential interventions such as increasing taxes in ZiG to promote its use. However, traders and individuals like street hawker Maynard Maketo and grocery seller Carol Munjoma continue to rely on US dollars due to lack of faith in the ZiG’s stability.
Market reports indicate ZiG is trading at varying rates on the black market and official exchanges, with concerns about its future persisting. Despite challenges, central bank authorities reaffirm their commitment to building trust in the new currency, emphasizing the need for time before assessing its success or failure.
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