HYPERINFLATION: Zimbabwe Introduces Gold-Backed Currency, ZIG, As Old Notes Go Out Of Circulation In 21 Days

The Reserve Bank of Zimbabwe (RBZ) has introduced a new gold-backed currency, the Zimbabwe Gold (ZiG).

As a result, the country has abandoned its old inflation battered currency, the ZWL.

The starting exchange rate to be gazetted next Monday of the ZiG currency will be at a rate of US$1: 13.56, the RZB said.

The development is part of the country’s effort to revive its currency which had once suffered a hyperinflation crisis.

All banks have been directed to convert their systems to the ZiG currency, the country’s Reserved Bank Governor, John Mushayavanhu, said in a statement.

“With effect from 5 April 2024, banks shall convert the current Zimbabwe dollar balances into the new currency which shall be called Zimbabwe Gold (ZiG) to foster simplicity, certainty, and predictability in monetary and financial affairs. The new currency will co-circulate with other foreign currencies in the economy,” Mushayavanhu said.

The ZiG is designed in 1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG, and 200ZiG.

The Reserve Bank said commercial banks will continue to accept the old currency for 21 days after 5 April 2024.

Recall that the peak month of hyperinflation occurred in mid-November 2008 with a rate estimated at 79,600,000,000 per cent per month.

The year-over-year inflation rate reached a shocking 89.7 sextillion per cent.