\n Gold\u2019s recent rally, alongside a steady buildup in foreign-exchange reserves, has provided a lifeline to Zimbabwe\u2019s bullion-backed currency, helping it recoup most of its losses against the U.S. dollar this year.\n <\/p>\n
\n The ZiG, short for Zimbabwe Gold, traded at 25.98 per dollar on Tuesday, marking its strongest level since January 8, according to Bloomberg’s report.\n <\/p>\n
\n Since its introduction in April 2024, the ZiG has depreciated only 0.7% against the dollar in 2025, a stark contrast to the wild swings that have historically defined Zimbabwe\u2019s currency market.\n <\/p>\n
\n The unit is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank, providing tangible support for its value.\n <\/p>\n
Zimbabwe\u2019s sixth attempt at stability<\/p>\n
\n The ZiG represents Zimbabwe\u2019s sixth effort in 15 years to establish a stable local currency, following a string of failed attempts that led to hyperinflation.\n <\/p>\n
\n At its height, prices were doubling almost daily, eroding household savings and destroying investor confidence.\n <\/p>\n
\n In 2009, the country effectively abandoned its national currency, adopting a multi-currency system dominated by the U.S. dollar and ushering in a prolonged period of dollarisation.\n <\/p>\n
\n Despite the ZiG\u2019s introduction, it remains thinly circulated in the southern African nation\u2019s economy.\n <\/p>\n
\n Most transactions are conducted in U.S. dollars, with companies such as Delta Corp Ltd. reporting that around 80% of sales occur in the foreign currency.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Gold\u2019s recent rally, alongside a steady buildup in foreign-exchange reserves, has provided a lifeline to Zimbabwe\u2019s bullion-backed currency,…\n","protected":false},"author":2,"featured_media":842,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[106],"class_list":{"0":"post-841","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-zimbabwe","8":"tag-zimbabwe"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=841"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/842"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}