By A Correspondent| Respected economist Professor Gift Mugano has poured cold water on claims of the Zimbabwe Gold (ZiG) currency’s stability, warning that it is an illusion propped up by artificial restrictions rather than genuine market confidence.

Posting on his official X (formerly Twitter) account, Mugano reacted to reports that the Reserve Bank of Zimbabwe (RBZ) is preparing to phase out the multi-currency system in favour of a mono-currency regime anchored solely on the ZiG.

“The so-called stability is fake!” Mugano wrote.

“If ZiG is stable, why is the Government of Zimbabwe (GoZ) afraid to use it as the mainstream currency for all transactions?”

He argued that the current appearance of stability is only possible because the government has deliberately limited the use of ZiG in critical sectors, including fuel purchases, passport fees, and certain taxes and duties — transactions that remain exclusively pegged in US dollars.

“ZiG’s stability was technically bought by GoZ by limiting its use,” Mugano stated, adding that such selective application of the currency undermines public trust and signals a lack of confidence from the authorities themselves.

His comments come amid growing public anxiety following revelations that the RBZ may soon scrap the multi-currency regime and compel citizens and businesses to transact solely in ZiG.

While the ZiG has remained relatively stable on the official market since its launch in April, critics argue this stability is unsustainable in the absence of full convertibility, transparency in reserve backing, and widespread usability.

Analysts warn that removing the US dollar without robust safeguards could trigger a repeat of past currency failures and fuel inflationary pressures, especially if confidence in the ZiG continues to lag.

The RBZ has not yet formally announced a timeline for the transition to a mono-currency system, but growing indications suggest the shift may be imminent.

Mugano’s remarks add to a chorus of skepticism from economists, business leaders, and ordinary citizens who fear that the ZiG, like its predecessors, may not withstand the rigours of market forces without comprehensive policy reforms and trust-building measures.