RBZ governor Mushayavanhu introduces new currency
The so-called ZiG to be denominated in multiples of 1, 2, 5, 10, 20, 100 and 200
By Staff Reporter
Newly appointed Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu has introduced a new gold-backed currency set to replace the current ZWL that has been battered by inflation and further abandoned by locals.
The so-named Zimbabwe Gold (ZiG) is being pegged in denominations of 1, 2, 5, 10, 20, 100 and 200 (1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG, and 200ZiG).
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The inaugural ZiG exchange rate is set to be gazetted this coming Monday at a rate of US$1: 13.56.
“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 in his maiden Monetary Policy Statement he presented at the RBZ building in Harare Friday.
The central bank chief said Zimbabweans have 21 days to convert their ZWL bank notes to ZiG.
Zimbabwean banks have also been directed to convert their systems to the ZiG currency.
Mushayavanhu added, “The starting exchange rate to be gazetted next Monday of the ZiG currency will be at a rate of US$1: 13,56and price shifts will be determined by the movements in gold prices.”
He said ZiG shall at all times be anchored and fully backed by a composite basket of reserves comprising foreign currency and precious metals (mainly gold), received by the Reserve Bank as part of in-kind royalties and kept in the vaults of the Bank.
