Zimbabwe's new currency ZiG faces challenges and opportunities

Zimbabwe Reserve Bank (ZRB)'s new currency, Zimbabwe Gold (ZiG), has performed well in the foreign exchange market but is facing difficulties in its own country. ZRB has taken new measures to combat black market trading and is calling on the public to report illegal traders and companies that refuse to accept ZiG through its X account. Since ZiG was introduced in physical form, its exchange rate against the US dollar has risen by 1.9%.

On May 15, 224 illegal foreign exchange traders were arrested and ZRB's Financial Intelligence Unit (FIU) froze 90 bank accounts and monitored bank activity to detect illegal transactions. The crackdown has significantly reduced the number of illegal money changers in the Harare central business district and surrounding areas. However, the shortage of coins still troubles the central bank, and ZRB plans to increase the supply of small change.

From June 10, Zimbabwe's Homelink Financial Services will offer ZiG debit card withdrawal services in seven cities, and other financial institutions will join in the future. ZiG is Zimbabwe's sixth currency in 15 years, supported by gold and foreign exchange, but its introduction has received mixed reactions from the public.