Zimbabwe’s central bank has pledged to intensify efforts against individuals sabotaging the country’s gold-backed currency, the Zimbabwe Gold (ZiG), which has significantly declined on the parallel market. While the ZiG trades at 13.94 to the dollar on the official market, it is being quoted as high as 26 on the unofficial market.
Central bank Governor John Mushayavanhu blamed unscrupulous traders for the discrepancy, inflating exchange rates when selling goods and services in ZiG. The bank will closely monitor parallel market activity and enforce currency regulations to address exchange rate distortions.
The ZiG, introduced in April 2024, has been weakened by speculative demand for US dollars, fueled by Zimbabwe’s historical currency instability.
The central bank is working on policy measures, including a multi-dimensional strategy of tight monetary policy and dollar injections, to stabilize the market. The country’s foreign currency receipts have risen by 10% due to strong performance in gold and diaspora remittances, with a current account surplus anticipated.
