In a bold move aimed at stabilizing the nation’s economy, Zimbabwe has introduced a new domestic currency backed by gold reserves and valuable minerals. The Presidential Powers (Temporary Measures) Statutory Instrument 60 of 2024.
S.I. 60 of 20 (Zimbabwe Gold Notes and Coins) Regulations, 2024, has paved the way for the issuance of ZiG notes and coins, marking a significant shift in the country’s monetary landscape.
Under these regulations, the Reserve Bank of Zimbabwe is empowered to issue ZiG notes and coins, which will serve as legal tender alongside any other accepted currencies. The new currency is backed by a composite basket of foreign currency reserves, precious metals, and valuable minerals, ensuring its stability and value.
One of the key features of the ZiG currency is its backing by gold reserves, with the value of one ZiG initially equivalent to one milligram of gold of ninety-nine percent purity. This unique characteristic provides Zimbabweans with a tangible and reliable form of currency, insulated from the volatility often associated with fiat currencies.
The introduction of ZiG notes and coins also includes measures to convert existing Zimbabwe dollar balances into ZiG balances, as well as the swapping of Zimbabwe dollar banknotes and coins. This transition period aims to facilitate a smooth migration to the new currency system, ensuring minimal disruption to economic activities.
In terms of design, the ZiG notes feature various security features, including watermarks, fluorescent security threads, and QR codes, to prevent counterfeiting and maintain the integrity of the currency. The different denominations of ZiG notes and coins are meticulously designed to reflect the rich cultural heritage of Zimbabwe.
This historic step towards economic reform demonstrates the government’s commitment to restoring confidence in the financial system and fostering sustainable growth. With the introduction of the ZiG currency, Zimbabweans can look forward to a more stable and prosperous future.
As the nation embraces this new chapter in its economic journey, stakeholders are encouraged to familiarize themselves with the regulations governing the issuance and usage of ZiG notes and coins.
By embracing this innovative approach to currency management, Zimbabwe is poised to unlock new opportunities and usher in an era of economic prosperity.
