Zimbabwe Moves to Make Gold-Backed ZiG a Store of Value, Not Just a Currency for Daily Payments: Central Bank Chief
Zimbabwe Moves to Make Gold-Backed ZiG a Store of Value, Not Just a Currency for Daily Payments: Central Bank Chief
With inflation falling to single digits, Zimbabwe is seeking to boost confidence in its national currency by creating more opportunities for people and investors to save and earn returns in ZiG, Reserve Bank of Zimbabwe Governor John Mushayavanhu told a US media outlet.
Key points from Mushayavanhu:
🟠New Investment Options: After successfully introducing 30- and 90-day ZiG deposits offering annual yields of 8% and 11%, respectively, the authorities plan to introduce longer-term government bonds.
🟠Learning from Neighbors: Zimbabwe is studying local-currency bond markets in South Africa, Namibia, and Zambia to help develop its own market.
🟠Growing Currency Reserves: Zimbabwe spent $1.35 billion supporting the ZiG in the first nine months of 2026. Its reserves have risen above $2 billion, enough to buy back all ZiG32 billion in circulation, according to the governor.
🟠Currency is Undervalued: Mushayavanhu believes the currency is undervalued, arguing that reserves imply an exchange rate of around ZiG18 per US dollar, compared with the current rate of roughly ZiG26.
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