In a bid to tame the nation's economic woes, Zimbabwe has introduced a new gold-backed currency, ZiG (Zimbabwe Gold), marking the sixth attempt in 15 years to replace the beleaguered Zimbabwean dollar. The Reserve Bank of Zimbabwe (RBZ) governor, John Mushayavanhu, unveiled ZiG on April 6, aiming to bring simplicity, certainty, and predictability to the country's monetary and financial affairs.

ZiG is backed by $575 million in gold, foreign currency reserves, and other minerals, and derives its name from a central bank-issued, gold-backed digital token called GBDT. The new currency is designed to contain inflation, which hit a seven-month high of 55% in March, and to rebuild trust in the nation's financial system.

However, the introduction of ZiG has been met with skepticism and chaos. The transition period saw transport operators, retailers, and traders rejecting the old currency, while illegal street forex dealers exploited the unbanked population. The government has arrested dozens of these dealers and frozen some businesses' bank accounts for refusing to accept ZiG or accepting it at their own exchange rates.

Experts like Steve Hanke, a professor of economics at Johns Hopkins University, believe that Zimbabwe's inflation data is understated, with the country's annual inflation rate measured at 1,191% - the highest in the world. The RBZ governor's efforts to allay the ghosts of 2008, when many lost their life savings due to the infamous 100-trillion-dollar notes, have been met with memes, cartoons, and even a PR song.

The transition to ZiG has been chaotic, with businesses and individuals given just 21 days to make deposits. The government's directive to convert company funds held by the central bank towards a forex auction system into a two-year ZiG-denominated bond at 7.5% interest per year has been criticized as "command economics" by economist Gift Mugano.

As Zimbabwe navigates this new economic landscape, the success of ZiG remains to be seen. Will it stem inflation and improve savings, or will it succumb to the same fate as its predecessors? Only time will tell if ZiG can restore trust and confidence in Zimbabwe's financial system.