During his address at an international trade fair held in Bulawayo, Kenya’s Deputy President William Ruto voiced his support for Zimbabwe’s introduction of the ZiG currency, citing it as a pivotal step towards revitalizing the nation’s economy amidst challenges and pressures, as reported by Bloomberg.
Ruto emphasized the significance of Zimbabwe’s bold move in overhauling its monetary policy, expressing confidence that the introduction of ZiG would significantly contribute to the country’s economic revival.
“This radical revitalization of Zimbabwe’s monetary policy will contribute greatly to the country’s economic resurgence,” remarked Ruto during his speech.
Highlighting Zimbabwe’s vast untapped reserves of copper, lithium, gold, platinum, silver, and other precious metals, Ruto underscored the potential wealth embedded within these resources, advocating for their utilization to support the national currency.
ZiG, short for “Zimbabwe Gold,” was recently launched to address economic instability and shield citizens from currency fluctuations and hyperinflation.
While Zimbabwe’s gold deposits have historically played a pivotal role in its economy, accounting for nearly a quarter of the nation’s total exports in January 2024, concerns have been raised regarding the adequacy of reserves to back the new currency, especially amid potential volatility in gold prices.
Assuring prudent management, Zimbabwe’s Central Bank governor affirmed that the issuance of ZiG notes would be restrained unless sufficient reserves are available to support the currency.
In alignment with the government’s objectives, Zimbabwe’s Vice President Constantino Chiwenga emphasized that the adoption of ZiG marks a significant stride towards reducing reliance on the US dollar, which remains legal tender until 2030.
The newly introduced ZiG banknotes will be circulated in denominations of 1, 2, 5, 10, 50, 100, and 200, signaling a tangible step towards economic stabilization and progress in Zimbabwe.