The Reserve Bank of Zimbabwe has taken a significant step in its monetary policy by introducing Zimbabwe Gold, abbreviated as ZiG, in both paper and coin formats. This new currency replaces the Zimbabwean dollar and is backed by a combination of gold and foreign currencies.

The rollout of ZiG in physical form began on April 29, with all of the country's banks reportedly having a supply by the end of that day. This follows the currency's earlier debut as a digital payment method in October. The launch exchange rate for ZiG was set at 13.56 ZiG to one U.S. dollar.

While digital trading in ZiG commenced on April 2, the currency's initial introduction in October was pegged to the price of gold. The transition to this new currency had a significant impact on the local stock market. Businesses in Zimbabwe are now required to pay at least half of their taxes in ZiG.

To stabilize the economy, the central bank has set an interest rate of 20%, a considerable decrease from its previous high of 130%. John Mushayavanhu, who assumed the role of central bank governor on March 28, expressed confidence that Zimbabwe's inflation rate, currently at 55%, will drop to just 2% annually with the introduction of this new currency. Despite these changes, over 80% of transactions in the country are still conducted using U.S. dollars, as the Zimbabwean dollar has lost nearly 75% of its value in the current year alone.

ZiG is backed by 2.5 tons of gold and $100 million in foreign currency reserves, totaling $285 million, which is three times the value of the ZiGs being issued. Mushayavanhu emphasized the need for a solid and stable national currency, stating, "It does not help to print money. Certainly under my watch, it is not going to happen."

Despite these efforts, the International Monetary Fund (IMF) has opposed the introduction of this gold-backed currency since the plan for ZiG was first announced in April 2023.