Starting Tuesday, Zimbabweans will adopt freshly minted banknotes and coins, ushering in the country’s third currency in the past decade. This new currency, also introduced in digital form earlier this month, is the latest measure aimed at curbing rampant inflation in Zimbabwe. However, early indications suggest challenges for the Zimbabwe Gold (ZiG) currency. Its digital variant has already experienced a 25% devaluation against the US dollar in the informal market.
ZiG is purportedly backed by gold and foreign currency reserves, an effort by the central bank to stabilize its value. The highest denomination available is the 200 ZiG note, valued at approximately $15. Individuals are permitted to withdraw a maximum of ZiG 3,000 per week, while companies can withdraw up to ZiG 30,000 weekly, according to authorities.
Interestingly, there appear to be exceptions to these withdrawal limits. The parliament, courts, and international organizations reportedly face no restrictions on cash withdrawals, as per local media reports.