Zimbabwe’s ruling party, Zanu-PF, has adopted a resolution to make the gold-backed ZiG currency the nation’s sole legal tender, aiming to phase out the use of the US dollar.
The resolution, finalized at Zanu-PF’s annual conference, instructs the government to “expedite dedollarization efforts” and prioritize the ZiG currency, although no specific timeline was set.
ZiG, short for Zimbabwe Gold, represents the country’s sixth currency change in 15 years, introduced as an alternative to the US dollar, which remains legal tender until at least 2030 under current law. However, President Emmerson Mnangagwa has suggested that this timeline could be shortened.
Since its launch in April, the ZiG has faced hurdles, including a 43% devaluation in September, which led to increased public reliance on the dollar.
Oxford Economics reported that this devaluation undermined public confidence in the ZiG, further driving dollar usage. The International Monetary Fund also cautioned that the ZiG alone cannot address Zimbabwe’s broader economic challenges, such as high inflation and limited trust in fiscal authorities.
Zanu-PF’s resolution calls for “strong measures to enhance the purchasing power of the ZiG.” As of Monday, the ZiG traded officially at 28.37 per US dollar, while parallel market rates ranged between 40 and 50 per dollar, according to ZimPriceCheck.com.
