Zimbabwe's national bank has introduced Zimbabwe Gold (ZiG), a physical currency backed by gold and foreign currencies, to replace the volatile Zimbabwean dollar. ZiG was launched digitally in October and released in paper and coin forms on April 29. On its debut, all banks in Zimbabwe had ample ZiG reserves, with an exchange rate of 13.56 ZiG to 1 USD.

Digital trading of ZiG began on April 2, initially linked to gold prices. While this transition initially disrupted the local stock market, it is expected to stabilize external trade. Businesses are required to pay at least half of their taxes in ZiG.

The introduction of ZiG has significantly reduced Zimbabwe's rampant inflation from 130% to 20%. Central bank governor John Mushayavanhu anticipates further lowering inflation to 2% annually from the current 55%. The Zimbabwean dollar has depreciated by 75% this year, with over 80% of transactions in U.S. dollars.

ZiG's value is backed by 2.5 tons of gold and $100 million in foreign currency reserves, totaling $285 million, triple the ZiG issuance value. Despite initial resistance from the IMF and being the third-largest user of cryptocurrency in Africa in 2023, Zimbabwe remains committed to establishing a robust and stable national currency.