Zimbabwe’s New Currency: What is ZiG and Why Does it Matter?

Zimbabwe has a new currency—ZiG (Zimbabwe Gold)—introduced in April 2024 to replace the struggling Zimbabwean dollar. Unlike previous currencies, ZiG is backed by gold and foreign reserves, making it one of the boldest monetary moves in the country’s history.

But will this new currency work? And what does it mean for Zimbabweans abroad sending money home? Let’s break it down.

ZiG stands for Zimbabwe Gold, a currency introduced by the Reserve Bank of Zimbabwe (RBZ) to tackle inflation and stabilise the economy. Unlike previous Zimbabwean dollars, which rapidly lost value due to inflation, ZiG is backed by gold reserves and foreign currency, meaning its value is supposed to be more stable.

Key facts about ZiG:

• Launched: April 2024
• Backed by: Gold reserves & foreign currency
• Replaces: The Zimbabwean dollar (ZWL)
• Coexists with: US dollars & other foreign currencies

The RBZ hopes that tying ZiG to tangible assets like gold will restore confidence in the local currency and prevent hyperinflation, which has plagued Zimbabwe’s economy for years.

Zimbabwe has faced multiple currency crises over the years. At one point, inflation was so extreme that the country abandoned its own currency and switched to the US dollar. However, this led to cash shortages and limited economic growth.

In 2019, Zimbabwe reintroduced the Zimbabwean dollar, but by 2023, it had lost more than 80% of its value due to inflation. The government needed a solution—hence, ZiG was introduced as a more stable alternative.

The goal?

• Reduce reliance on the US dollar
• Control inflation through gold reserves
• Regain trust in Zimbabwe’s banking system

But the big question remains: Will ZiG work where other currencies failed?

For Zimbabweans living and working in France, Germany, the UK, and other European countries, sending money home is essential. With the introduction of ZiG, expats need to consider exchange rates, transaction fees, and the stability of the new currency.

1. How Will ZiG Affect Money Transfers from the EU?

If ZiG remains stable, transferring money could become more predictable, with less fluctuation in exchange rates. However, if its value starts to decline, Zimbabweans receiving money may lose purchasing power when converting EUR, GBP, or other currencies into ZiG.

2. Should Expats Continue Sending Money in Euros or Dollars?

For now, many Zimbabwean businesses and money transfer services may still prefer transactions in USD or EUR due to the uncertainty of ZiG. It may be safer to send money in foreign currencies until ZiG has established trust and liquidity in the market.

3. How Can Zimbabweans in the EU Protect Their Hard-Earned Money?

• Convert your funds into a more stable currency before transferring to ensure your money holds its value. Make sure to use trusted money exchange services (like Globex) to get competitive rates and secure transactions.
• Check exchange rates regularly before making large transfers.
• Diversify remittances—consider sending a portion of funds in USD/EUR while testing the reliability of ZiG.
• Monitor Zimbabwe’s monetary policies and adjust transfer strategies based on government decisions and currency performance.

As Zimbabwe’s currency system evolves, staying informed and using reliable transfer services will be crucial for expats managing cross-border remittances.

ZiG is Zimbabwe’s most significant currency experiment in years, and its success depends on public trust, government policies, and global market conditions. If managed well, it could bring long-term stability. If not, Zimbabwe could face yet another currency crisis.

For Zimbabweans abroad, staying informed about exchange rates and using reliable money transfer services will be crucial in navigating these changes.

Final Thoughts

ZiG is a bold step, but whether it brings financial stability or repeats past mistakes is yet to be seen. If you’re sending money to Zimbabwe, stay updated, compare exchange rates, and choose the right services to protect your hard-earned money.

Would you like help making your money transfers smoother? Check out Globex’s currency exchange services today.