Zimbabwe’s currency, Zimbabwe Gold (ZiG), hit its lowest level against the US dollar since its launch last month, as reported on Monday, May 6th. According to data released on the Reserve Bank of Zimbabwe’s website, ZiG traded at 13.67 to the dollar, marking a 0.8% decline from its initial rate of 13.56 per dollar on April 8th. This marks the sixth attempt by the country to introduce a stable local currency since 2008. Authorities assert that ZiG is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank.
In a Bloomberg interview on May 2nd, Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube expressed the government’s intention to pursue full convertibility of the currency in the future to enhance its attractiveness. RBZ Deputy Governor Innocent Matshe suggested that initial steps towards achieving convertibility might involve negotiations with Zimbabwe’s major trading partners to accept payments in the new currency.
South Africa, Zimbabwe’s largest trading partner accounting for nearly 35% of exports in March, along with neighbouring countries like Mozambique and Zambia, are key players in this initiative.
