Can Zimbabwe’s ZiG win trust and replace the US dollar?

After repeated currency crises, Zimbabweans remain wary of the ZiG. Harare, Zimbabwe – The government is trying to persuade citizens to use its own currency more widely, with the longer-term aim of reducing reliance on the US dollar. But after years of currency instability, many remain reluctant to trust the latest attempt. The Zimbabwe Gold (ZiG), introduced in April 2024, is a government effort to restore confidence in the local currency. The Reserve Bank of Zimbabwe (RBZ) says the currency is backed by foreign currency and precious metal reserves, including gold. Yet the challenge extends beyond introducing a new currency or strengthening its reserves. Zimbabweans who have watched their savings lose value and their wages shrink through successive currency crises remain cautious about holding money in a currency whose purchasing power they fear could deteriorate.

Zimbabwe abandoned its local currency in 2009 after a period of hyperinflation and adopted a multicurrency system dominated by the US dollar. A domestic currency returned in 2018, but repeated instability has made rebuilding public confidence difficult. For primary school teacher Charles Mbwandarikwa, the experience of earlier currency crises remains a warning. He receives about a third of his salary in ZiG and says he exchanges it quickly rather than holding on to it. His caution stems from the losses he suffered when Zimbabwe’s previous