Zimbabwe has introduced a new currency, the ZiG, in a desperate attempt to tackle its long-running economic woes. The ZiG replaces the Zimbabwe dollar, which has been plagued by hyperinflation and public distrust.
However, the rollout has been met with skepticism. Many Zimbabweans remain wary after years of economic instability. The U.S. dollar continues to be the preferred currency for everyday transactions, with some businesses and government departments even refusing to accept the ZiG.
This lack of confidence stems from the country’s turbulent economic history. The 2009 hyperinflation crisis saw the Zimbabwe dollar become worthless, forcing a switch to the U.S. dollar. The reintroduction of a local currency raises fears of a return to those dark days.
The government insists the ZiG is backed by gold reserves and represents a move towards national pride. However, many Zimbabweans remain unconvinced. Some businesses fear punishment for not using the ZiG, while others simply lack faith in its stability.
President Mnangagwa has taken a hard line against black market currency traders, blaming them for undermining the ZiG.
