Zimbabwe’s ZIG could become sole currency by 2030 – President

<div>Zimbabwe’s ZIG could become sole currency by 2030 – President</div>
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Zimbabwe's new gold-backed currency could become sole tender by 2030 - President

Zimbabwean President Emmerson Mnangagwa suggested that ZIG – the nation’s new gold-backed currency will become the sole legal tender before the 2030 deadline, phasing out the current multicurrency system.

  • Zimbabwe’s president has suggested that the nation’s new gold-backed currency will become the sole legal tender before the 2030 deadline.
  • This shift would phase out the US dollar, which is currently used in over 80% of transactions.
  • The ZiG is the nation’s sixth attempt in 15 years to establish a functioning local currency.

This shift would phase out the US dollar, which is currently used in over 80% of transactions, Bloomberg reported.

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Last October, Zimbabwe extended its multi-currency system, with the U.S. dollar as its anchor, until 2030 to address concerns about the impending currency policy changes.

Speaking at an event on Thursday in the border city of Mutare, Mnangagwa stressed the importance of the ZiG, short for Zimbabwe Gold, replacing the US dollar.

What the president said:

“In two years’ time — in fact, two years is too far — we will get to the point where when I see that the ZiG is available in every part of the country,” Mnangagwa said. “We are getting there. When you go to the shops carrying US dollars, they will refuse to accept them.”

The ZiG is the nation’s sixth attempt in 15 years to establish a functioning local currency. Launched in early April, it is backed by 2.5 tons of gold and $100 million in foreign-currency reserves held by the central bank. The Central Bank governor said that the country would refrain from printing additional ZiG notes unless it has the reserves to support the new currency.

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The ZiG was trading at 13.69 per US dollar on Friday, recovering from its largest single-day decline of 0.5% the previous day, according to data posted on the central bank’s website. Central bank officials dismissed the need to intervene in support of the currency, expressing confidence that it will strengthen against the greenback.

A collapse of the defunct Zimbabwe dollar drove citizens to prefer US dollars to escape exchange-rate volatility. The southern African nation uses greenbacks for day-to-day transactions, including food, medicines, and fuel.

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