Zimbabwe's Reserve Bank to Rebrand Devalued Currency
The Reserve Bank of Zimbabwe (RBZ) has announced plans to introduce newly designed ZWG notes, effectively phasing out the old 'defiled' versions. Since the ZWG was launched on April 5, 2024, it has faced significant challenges, including a 43% devaluation in September 2024, which undermined its gold-backed status.
In some areas, people have started using the rand for transactions, especially for smaller denominations. RBZ Governor Dr. John Mushayavanhu said that the updated notes will have better quality and durability, explaining that this is a normal modernization rather than a new currency.
However, critics and market observers have expressed scepticism, warning that limited details from the RBZ risk fuelling speculation and undermining confidence in the local unit.
InFocus
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Gold coins were reintroduced to the market by the Reserve Bank in April to counter the rising global gold price. However, economists say the short-lived sale had minimal impact on the economy. The sale of coins from its accumulated stock abruptly ended in mid-June, and another chapter in the country's currency chaos was written, writes
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Zimbabwe's newly launched gold-backed currency, the Zimbabwe Gold (ZiG), has shown promise in its first week of trading, appreciating by 1.1 percent against the U.S. dollar amidst rising gold prices due to global tensions.
The currency, introduced to replace the inflation-ridden old Zimbabwean dollar, saw a positive response from banks, traders, and businesses, with successful conversions from the old currency. ZiG is set to circulate alongside other foreign currencies until 2030 and
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John Mushayavanhu, the governor of the Reserve Bank of Zimbabwe.
