IMF Calls on Zimbabwe to Adopt ZiG as Exclusive Legal Tender

The IMF has thrown its weight behind Zimbabwe’s ZiG currency, urging the country to adopt it as the sole legal tender to help stabilize the economy. Introduced in April and backed by 2.5 tons of gold and $100 million in reserves, ZiG is Zimbabwe’s sixth attempt in 15 years to create a stable currency. However, public trust remains low, with 80% of transactions still done in US dollars. According to the IMF, reforms, such as strengthening the forex market and unifying exchange rates, could significantly improve currency stability and economic outcomes. While President Emmerson Mnangagwa aims to phase out the multicurrency system by 2030, the ZiG’s rocky start and lack of convertibility indicate serious challenges ahead.

Business Insider Africa