The Sunday News
THE government of Zimbabwe has recently unveiled a new currency, “ZiG,” as part of a comprehensive economic reform initiative aimed at addressing ongoing challenges and stabilizing the economy.
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Key Points
New Currency Introduction: The government has introduced the new currency “ZiG,” which is backed by reserves and royalties, as part of its Monetary Policy Highlights.
Transition from ZWL to ZiG: The existing Zimbabwean dollar (ZWL) will be converted to ZiG, and the new currency will circulate alongside other currencies in the country.
Coexistence with Multi-Currency System: Despite the introduction of ZiG, the multi-currency system will remain in place until 2030, in accordance with existing legislation.
Denominations and Availability: ZiG notes will be available in denominations of 1, 2, 5, 10, 50, 100, and 200, with half and quarter ZiG coins. The currency has been printed and will be available from the upcoming week.
Exchange Rate: 1 ZiG is equivalent to 6 US cents, and all banks are mandated to accept old notes for the next 21 days.
Regulations for Zimbabwe Dollar Notes: Individuals with Zimbabwe dollar notes are required to deposit them in banks starting Monday, with specific scrutiny for those holding ZWL100,000 worth of notes.
Mitigating Economic Challenges: The introduction of ZiG is anticipated to mitigate the effects of inflation and currency fluctuations that have impacted the economy in recent years.
Conversion of Financial Obligations: All financial obligations, including debts and contracts, will be converted to ZiG to facilitate a smoother transition to the new currency system for businesses and individuals.
Government’s Commitment: The introduction of ZiG reflects the government’s commitment to implementing effective monetary policies to foster growth and stability in Zimbabwe’s economic landscape.
Conclusion
The unveiling of ZiG represents a significant milestone in Zimbabwe’s economic journey, highlighting the government’s dedication to enacting measures that promote economic growth and stability. However, the success of the new currency hinges on public acceptance and its ability to maintain value over time.
