Zimbabwe’s Economic Stability Boosted by New Currency, Zimbabwe Gold (ZiG)

June 29, 2024
ZiG notes | Report Focus News
ZiG notes

The introduction of Zimbabwe Gold (ZiG) in April 2024 has brought much-needed stability to Zimbabwe’s economy, according to the International Monetary Fund (IMF). ZiG has effectively curbed inflationary pressures, with the IMF projecting a modest 7% inflation rate for the remainder of 2024 if current trends persist.

Persistence Gwanyanya from the Reserve Bank of Zimbabwe acknowledges improvements in fiscal management but stresses the ongoing need to combat corruption, which costs the country nearly US$2 billion annually. Economist Godfrey Kanyenze emphasizes that eradicating corruption is crucial for sustained economic growth.

ZiG, launched with an exchange rate pegged closely to the US dollar, has maintained stability. In June 2024, the Zimbabwe Statistics Agency (ZIMSTAT) reported zero inflation month-on-month.

While these developments are promising, the IMF cautions that significant governance reforms are still needed for Zimbabwe to achieve lasting economic resilience.