{"id":4767,"date":"2025-04-15T15:59:39","date_gmt":"2025-04-15T14:59:39","guid":{"rendered":"https:\/\/www.mondevudailleurs.ae\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/"},"modified":"2025-04-16T11:10:49","modified_gmt":"2025-04-16T10:10:49","slug":"zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors","status":"publish","type":"post","link":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/","title":{"rendered":"Zimbabwe’s ZiG Currency Heads for Extinction Due to Policy Errors"},"content":{"rendered":"\n

Zimbabwe’s latest attempt at stabilizing its currency \u2014 the ZiG, or Zimbabwe Gold \u2014 is bound to fail, as policy mistakes push it into obscurity, the country’s longest-existing independent brokerage stated.<\/p>\n\n

In a bleak assessment, Imara Asset Management CEO John Legat and Chief Investment Officer Shelton Sibanda cautioned that the ZiG is headed for extinction, not by way of precipitous devaluation, as in the instance of previous local currencies, but by way of non-use in the country’s economy.<\/p>\n\n

“The ZiG is racing towards extinction,” they wrote in a client note, pinpointing a six-month liquidity deficit as a key factor in the currency’s decline. The brokerage estimates that 80% of all payments in Zimbabwe continue to be in foreign currencies, the majority of which is the U.S. dollar, and that the South African rand also accounts for a portion of payments. <\/p>\n\n

The ZiG, launched over a year ago, was set to be the sixth attempt at establishing a workable local currency by Zimbabwe since 2009, following a string of failed attempts that culminated in the collapse of the Zimbabwean dollar due to hyperinflation. This time, the new money is supported by gold bullion and foreign exchange reserves by the central bank. However, as much as government has tried to market the currency, Zimbabweans are not yet convinced, its value constantly decreasing. <\/p>\n\n

Liquidity crisis deepens<\/em>Imara managers attribute a severe liquidity constraint as the overarching issue crippling the ZiG. Failure of the currency to remain liquid in the market, especially in the parallel (black) market, has led individuals and businesses to hold on to foreign currencies like the dollar. Although Reserve Bank of Zimbabwe monetary policy committee member Persistence Gwanyanya has contended that ZiG liquidity is only tight on the informal market, the fact remains that the currency is yet to make any headway in the formal economy. Gwanyanya further stated that the reversal of U.S. dollar positions into the ZiG may ultimately unlock credit into the economy, but this is yet to happen. <\/p>\n\n

Increased Use of Dollars<\/em>Since the introduction of the ZiG, the Reserve Bank of Zimbabwe has tried to calm the currency by raising interest rates. But in doing so, they have inadvertently increased the popularity of dollar use, as Zimbabweans and companies want the security of foreign money as inflation rises.Imara\u2019s executives argue that monetary policy alone will not solve Zimbabwe\u2019s economic challenges. \u201cWhat is needed is a comprehensive plan to boost government revenue, control deficit spending, and rebuild confidence in the currency and economy,\u201d they said. <\/p>\n\n

Imara\u2019s executives argue that monetary policy alone will not solve Zimbabwe\u2019s economic challenges. \u201cWhat is needed is a comprehensive plan to boost government revenue, control deficit spending, and rebuild confidence in the currency and economy,\u201d they said. <\/p>\n\n

Calls for scrapping the ZiG<\/em>In light of the growing issues, Imara’s managers suggested that it would be better for the government to abandon the ZiG altogether. They argued that additional support for the currency might turn out to be useless if Zimbabwe cannot generate the confidence and liquidity needed for its survival. “It would be better just to scrap it and move on,” they summed up. <\/p>\n\n

As Zimbabwe continues to be plagued by its moribund economy, hyper-inflation, and widespread dollarization, the ZiG’s future is on the balance. With growing skepticism of its viability, the country can once again look forward to facing a difficult reckoning with regards to its money policy and currency alternatives. <\/p>\n

Maria Kuznetsova<\/div>

Maria Kuznetsova<\/p>

Secr\u00e9taire de redaction<\/p><\/div><\/div>","protected":false},"excerpt":{"rendered":"Zimbabwe’s latest attempt at stabilizing its currency \u2014 the ZiG, or Zimbabwe Gold \u2014 is bound to fail,…","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[41,38],"tags":[48],"class_list":{"0":"post-4767","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"category-geopolitics","8":"tag-articles-en","9":"cs-entry","10":"cs-video-wrap"},"yoast_head":"\nZimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs\" \/>\n<meta property=\"og:description\" content=\"Zimbabwe’s latest attempt at stabilizing its currency \u2014 the ZiG, or Zimbabwe Gold \u2014 is bound to fail,…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\" \/>\n<meta property=\"og:site_name\" content=\"Le Monde Vu D'ailleurs\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-15T14:59:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-16T10:10:49+00:00\" \/>\n<meta name=\"author\" content=\"Maria Kuznetsova\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@mvda_fr\" \/>\n<meta name=\"twitter:site\" content=\"@mvda_fr\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maria Kuznetsova\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\"},\"author\":{\"name\":\"Maria Kuznetsova\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/c605f6699337f7c32e08fd6081243c0d\"},\"headline\":\"Zimbabwe’s ZiG Currency Heads for Extinction Due to Policy Errors\",\"datePublished\":\"2025-04-15T14:59:39+00:00\",\"dateModified\":\"2025-04-16T10:10:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\"},\"wordCount\":591,\"publisher\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#organization\"},\"keywords\":[\"Articles\"],\"articleSection\":[\"Economy\",\"Geopolitics\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\",\"name\":\"Zimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs\",\"isPartOf\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#website\"},\"datePublished\":\"2025-04-15T14:59:39+00:00\",\"dateModified\":\"2025-04-16T10:10:49+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\/\/www.mondevudailleurs.ae\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Zimbabwe’s ZiG Currency Heads for Extinction Due to Policy Errors\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#website\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/\",\"name\":\"Le Monde Vu D'ailleurs\",\"description\":\"D'autre points de vues sur l'\u00e9conomie et les affaires internationales.\",\"publisher\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.mondevudailleurs.ae\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#organization\",\"name\":\"Le Monde Vu D'ailleurs\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/03\/cropped-Simple-Minimalist-Creative-Studio-Logo-150-x-100-px.png\",\"contentUrl\":\"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/03\/cropped-Simple-Minimalist-Creative-Studio-Logo-150-x-100-px.png\",\"width\":469,\"height\":469,\"caption\":\"Le Monde Vu D'ailleurs\"},\"image\":{\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/x.com\/mvda_fr\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/c605f6699337f7c32e08fd6081243c0d\",\"name\":\"Maria Kuznetsova\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/05\/cropped-cropped-Moi-2-96x96.jpg\",\"contentUrl\":\"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/05\/cropped-cropped-Moi-2-96x96.jpg\",\"caption\":\"Maria Kuznetsova\"},\"description\":\"Secr\u00e9taire de redaction\",\"url\":\"https:\/\/www.mondevudailleurs.ae\/en\/author\/marie\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Zimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/","og_locale":"en_US","og_type":"article","og_title":"Zimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs","og_description":"Zimbabwe’s latest attempt at stabilizing its currency \u2014 the ZiG, or Zimbabwe Gold \u2014 is bound to fail,…","og_url":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/","og_site_name":"Le Monde Vu D'ailleurs","article_published_time":"2025-04-15T14:59:39+00:00","article_modified_time":"2025-04-16T10:10:49+00:00","author":"Maria Kuznetsova","twitter_card":"summary_large_image","twitter_creator":"@mvda_fr","twitter_site":"@mvda_fr","twitter_misc":{"Written by":"Maria Kuznetsova","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#article","isPartOf":{"@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/"},"author":{"name":"Maria Kuznetsova","@id":"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/c605f6699337f7c32e08fd6081243c0d"},"headline":"Zimbabwe’s ZiG Currency Heads for Extinction Due to Policy Errors","datePublished":"2025-04-15T14:59:39+00:00","dateModified":"2025-04-16T10:10:49+00:00","mainEntityOfPage":{"@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/"},"wordCount":591,"publisher":{"@id":"https:\/\/www.mondevudailleurs.ae\/#organization"},"keywords":["Articles"],"articleSection":["Economy","Geopolitics"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/","url":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/","name":"Zimbabwe's ZiG Currency Heads for Extinction Due to Policy Errors - Le Monde Vu D'ailleurs","isPartOf":{"@id":"https:\/\/www.mondevudailleurs.ae\/#website"},"datePublished":"2025-04-15T14:59:39+00:00","dateModified":"2025-04-16T10:10:49+00:00","breadcrumb":{"@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.mondevudailleurs.ae\/en\/zimbabwes-zig-currency-heads-for-extinction-due-to-policy-errors\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Accueil","item":"https:\/\/www.mondevudailleurs.ae\/"},{"@type":"ListItem","position":2,"name":"Zimbabwe’s ZiG Currency Heads for Extinction Due to Policy Errors"}]},{"@type":"WebSite","@id":"https:\/\/www.mondevudailleurs.ae\/#website","url":"https:\/\/www.mondevudailleurs.ae\/","name":"Le Monde Vu D'ailleurs","description":"D'autre points de vues sur l'\u00e9conomie et les affaires internationales.","publisher":{"@id":"https:\/\/www.mondevudailleurs.ae\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.mondevudailleurs.ae\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.mondevudailleurs.ae\/#organization","name":"Le Monde Vu D'ailleurs","url":"https:\/\/www.mondevudailleurs.ae\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.mondevudailleurs.ae\/#\/schema\/logo\/image\/","url":"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/03\/cropped-Simple-Minimalist-Creative-Studio-Logo-150-x-100-px.png","contentUrl":"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/03\/cropped-Simple-Minimalist-Creative-Studio-Logo-150-x-100-px.png","width":469,"height":469,"caption":"Le Monde Vu D'ailleurs"},"image":{"@id":"https:\/\/www.mondevudailleurs.ae\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/x.com\/mvda_fr"]},{"@type":"Person","@id":"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/c605f6699337f7c32e08fd6081243c0d","name":"Maria Kuznetsova","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.mondevudailleurs.ae\/#\/schema\/person\/image\/","url":"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/05\/cropped-cropped-Moi-2-96x96.jpg","contentUrl":"https:\/\/www.mondevudailleurs.ae\/wp-content\/uploads\/2025\/05\/cropped-cropped-Moi-2-96x96.jpg","caption":"Maria Kuznetsova"},"description":"Secr\u00e9taire de redaction","url":"https:\/\/www.mondevudailleurs.ae\/en\/author\/marie\/"}]}},"_links":{"self":[{"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/posts\/4767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/comments?post=4767"}],"version-history":[{"count":3,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/posts\/4767\/revisions"}],"predecessor-version":[{"id":4788,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/posts\/4767\/revisions\/4788"}],"wp:attachment":[{"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/media?parent=4767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/categories?post=4767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mondevudailleurs.ae\/en\/wp-json\/wp\/v2\/tags?post=4767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}