ZiG

In June, Zimbabwe reached a significant milestone: its gold and foreign-currency reserves backing the newly minted bullion-backed currency, the ZiG (Zimbabwe Gold), hit a record high. As reported by the central bank, this development not only signifies a turn in economic fortunes for the nation but also hints at the resilience of a country striving to lift itself from the depths of financial despair. The reserves surged impressively to $731 million—up from $639 million in May and almost tripling from the $276 million…

Zimbabwe’s gold-backed currency, the ZiG, recently achieved a significant milestone by recording its largest single-day gain against the U.S. dollar in 2023. This remarkable change can be attributed to a surge in gold production alongside a bolstered reserve of foreign currency, reflecting a new chapter in Zimbabwe’s economic narrative. On Friday, the ZiG appreciated by 0.2%, trading at 26.89 per dollar. This shift was particularly noteworthy, considering it marked only the twelfth instance of the currency…

The Journey of Zimbabwe Gold (ZiG): A Hopeful Yet Shaky Future In a recent statement reflecting its ongoing commitment to the nation, the International Monetary Fund (IMF) has expressed a distinct interest in Zimbabwe's new currency, ZiG. The organization has articulated its desire to see this currency evolve into a “fully recognized national currency.” This development is part of broader considerations regarding placing Zimbabwe under a staff-monitored program. But what does this mean for the everyday…

Zimbabwe’s gold-backed currency, the ZiG, is veering toward a precipice—not due to rapid devaluation, but rather through a growing sense of irrelevance. This assertion comes from Imara Asset Management, recognized as Zimbabwe's oldest independent brokerage. The looming question is: Can a currency survive when it seems to fade into the background of economic activity? Unlike previous currency crises in the nation, which were often sparked by the destructive forces of hyperinflation, the problem with the ZiG seems to lie more…