By Business Reporter- President Emerson Mnangagwa has dumped the Zimbabwean dollars and replaced it with yet another useless currency disregarding the underlying issues fueling the nation’s economic decline.

The Reserve Bank of Zimbabwe, acting on behalf of the government, announced the launch of the “new” currency, ZiG (Zimbabwe Gold), on Friday following a precipitous decline in the value of the Zimbabwe Dollar.

RBZ Governor John Mushayavanhu revealed the particulars of what he calls new currency during the presentation of the 2024 Monetary Policy Statement (MPS) on Friday, April 5, 2024. ZiG notes will be issued in denominations of 1, 2, 5, 10, 50, and 100, with coins available in half and quarter ZiG units.

Mushayavanhu emphasised that the conversion of Zimbabwe dollar balances to ZiG will begin immediately, with a 21-day window for citizens to exchange their ZWL notes for the new currency.

 He stated, “I don’t believe in taking people’s money. The ZiG will circulate with other currencies in the basket.” The interbank rate as of April 5, 2024, will determine the conversion rate.

However, individuals holding ZWL$100,000 worth of notes will face scrutiny, requiring them to explain the source and purpose of their holdings.

Key highlights from the Monetary Policy Statement include:

• The new currency will be backed by reserves and royalties.
• All ZWL dollar currencies will be converted to ZiG.
• ZiG will operate alongside other currencies.
• The multi-currency system will remain in place until 2030 as per existing legislation.
• All financial obligations will be denominated in ZiG.
• Banks are mandated to accept old notes for the next 21 days.
• ZiG notes will come in denominations of 1, 2, 5, 10, 20, 100, and 200.
• 1 ZiG will be equivalent to 6 US cents.

Despite the government’s efforts to stabilize the economy, skepticism remains high, with many questioning the effectiveness of yet another currency intervention in the face of persistent economic challenges.