By Agnes Magunje
The introduction of the new currency the ZiG (Zimbabwe Gold) in April 2024 was met with a lot of scepticism, coming after many failing currency measures to curb inflation and economic crisis, ZiG seemed dead on arrival. The many interactions with various stakeholders during its inception indicated the discomfort and fears of many Zimbabweans predicting another nightmare coming at a crucial time, while the country is experiencing the effects of the El Nino draught.
ZiG coming in to mitigate the currency instability and hyper inflation was sure to crumble as other previous currencies considering the use of the acquainted US Dollar in the market. It has been a case of “Bad money driving out Good money”. Other currencies suffered exchange tribulations and inflationary crises this was surely another volcano waiting to erupt.
Three months down the line ZiG the new baby in the market seems to be growing in strides. Gaining confidence in the local market and global market and now it is an internationally recognised currency with its own distinct code (ZWG) giving it an identity among other nations currencies.
This could be only alluded to its intention to address the critical areas of insuring currency stability, boosting confidence, addressing hyper-inflation and economic recovery, making it clear how it was going to undo the past mistakes.
Change is not easy and it cannot be achieved overnight, but with the current deliberate actions taken, it is achievable. Managing exchange rates and managing paper money: not overly supplied allows the ZiG(ZWG) to appreciate, maintaining value.
None wants to accept money only at face value that will be much less when it comes time to spend it. Money fluctuates in value in sympathy with supply and demand as well as other commodities do. Putting gold value against the currency has been of essential importance as the fluctuation of the commodity must be as little as possible because without gold it would be difficult to transact the volume of business that is done in the world.
ZiG (ZWG) has in its coming shown that it has intrinsic value, stability and elasticity. The nation must continue to change its mindset and realise how valuable it is to revert back to the use of the local currency in order to achieve economic freedom and create a middle-class economy by 2030.
The use of plastic money and other money platforms compared to cash should be welcome, as this will bring economic growth and stability reviving industry and the banking sector. Continuous recalibrating of the monetary policy will eventually reap expected results if consistency remains key. Change should not be an event but a continuous process and must come from within. Let us all embrace (ZWG) for a better future.
