Published: 6 hours ago

THE Reserve Bank of Zimbabwe (RBZ) has embarked on a fresh nationwide survey to assess confidence in the Zimbabwe Gold (ZiG) currency, more than a year after it was introduced as the country's sole legal tender.

ZiG was launched on April 5, 2024, replacing a mix of currencies and the struggling Zimbabwe dollar. Backed by a basket of foreign currencies and gold reserves, it was marketed as a stable, home-grown solution to chronic inflation and exchange rate volatility.

According to the RBZ, an initial survey carried out a few months after its launch showed encouraging results, with over 80 percent of respondents expressing acceptance of ZiG. However, authorities say it is now crucial to test whether confidence has been sustained, especially in the face of economic pressures.

The ongoing survey - which will run until December 2025 - will cover both physical cash transactions and electronic payments. It will also collect data on how ZiG is being used across urban and rural communities, and whether it is serving effectively as a medium of exchange, a store of value, and a unit of account.

In a statement, the central bank said:

"This survey is part of continuous monitoring efforts to ensure that the currency continues to perform its intended role. Findings will feed into our policy decisions on exchange rate stability, money supply management, and inflation control."

Economic analysts say the exercise is critical at a time when public trust in local currencies has historically been fragile. "Zimbabweans have lived through multiple currency collapses in the past two decades. The RBZ will have to use this feedback not just as data but as a tool to build lasting confidence," said Harare-based economist Prosper Chitambara.

While some businesses and government institutions have embraced ZiG, many transactions - particularly in informal markets - are still dominated by US dollars. Critics argue that without stronger enforcement of the "sole legal tender" policy, ZiG risks becoming a secondary option.

The survey's results are expected to shape Zimbabwe's next phase of monetary policy, with the RBZ under pressure to ensure stability ahead of the 2025 national budget.
- Chronicle

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