Ouagadougou: Zimbabwe has adopted ‘Zimbabwe gold’ or ‘ZIG’, a new currency backed by gold, a precious substance whose production is expected to increase in the coming months, according to a government official.
Instead of the Zimbabwean dollar, the victim of unprecedented hyperinflation, ‘the ZiG currency is supported by gold reserves.
It then becomes particularly critical to ensure that we unlock the full potential of our gold resources and our gold sector,’ explained Winston Chitando, Zimbabwe’s Minister of Mines and Mineral Development, while addressing the media at a program to launch a gold mobilization workshop organized in the capital Harare, according to Xinhua.
In Minister Chitando’s view, Zimbabwe’s gold sector aims to increase its production to 40 tonnes this year, compared to 30.1 tonnes delivered last year.
The minister also indicated that increasing gold production would be done in several ways, including by allowing artisanal and small-scale miners to produce more of the yellow metal. The g
overnment will also give medium and large mining companies the means to continue to invest and increase their production.
Furthermore, Mr. Chitando said there is a need to ensure that gold is delivered through proper channels and that all mining activities are carried out in a responsible and sustainable manner, in compliance with the laws of the country.
The ZiG replaces the old Zimbabwean dollar which in 2009 became the weakest currency in the world, issuing notes of 100,000 billion.
Before the arrival of the new currency, the Zimbabwean authorities adopted a basket of foreign currencies including the South African rand, the Botswanan pula, the Indian rupee, the Chinese yuan, the euro, the American dollar and the Australian dollar. .
In 2014, the country released US dollar coins, only valid in Zimbabwe, then Zimbabwean dollars, pegged to the US dollar, from 2016.
In 2019, the fixed parity between the Zimbabwean dollar and the US dollar is abolished.
Nevertheless, the country’s gold producers and expor
ters continued to receive 75% of their income in US dollars.
The new Zimbabwean gold-backed currency has been in circulation since April 8, 2024.
Source: Burkina Information Agency