Zimbabwe Authorities Mix Charm with Force in an Attempt to Shore Up the World’s Newest Currency

Zimbabwe launched its sixth currency in 15 years, the ZiG, in April 2024. This gold-backed currency aimed to replace the Zimbabwe dollar, which suffered from hyperinflation.

• Authorities launched a public relations campaign to promote the ZiG.
• A reggae song praising the ZiG received heavy airplay.
• Public rallies and meetings encouraged citizens to embrace the new currency.
• Many Zimbabweans prefer the US dollar, which is also legal tender.
• The black market offers exchange rates far exceeding the official rate.

Forceful Measures

• The government arrested over 200 street currency traders for offering unofficial exchange rates.
• Businesses caught rejecting the ZiG or using unofficial rates face hefty fines and frozen accounts.

With low trust and continued demand for USD, the ZiG faces an uphill battle. The government must address the root causes of dollarization to achieve its de-dollarization goals.

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