Published: 2 hours ago

United States-based economist and currency expert Steve Hanke has ranked the Zimbabwe Gold (ZiG) as the seventh worst-performing currency globally, citing a 26% depreciation against the US dollar over the past year.

In his weekly currency watchlist released Sunday, Hanke also issued a scathing critique of President Emmerson Mnangagwa, describing his administration as "arrogant, incompetent and corrupt." The Johns Hopkins professor has monitored Zimbabwe's inflation and monetary trends for over five years, consistently highlighting structural weaknesses in the country's financial policies.

The ZiG was introduced in April 2024 to reduce Zimbabwe's dependence on the US dollar, replacing the Zimbabwean dollar that collapsed due to hyperinflation in 2019. Despite government assurances that the ZiG is a stable, gold-backed currency supported by foreign reserves, adoption has been slow, with most businesses continuing to prefer the US dollar.

Authorities have defended the currency, stating that it is part of a structured plan to gradually phase out the US dollar and transition to a monocurrency regime by 2030. However, Hanke's assessment underscores ongoing challenges, including low confidence, limited circulation, and persistent macroeconomic vulnerabilities.

Zimbabwe faces mounting pressure to stabilize the ZiG as the government continues its push for a domestically driven currency system, even as public skepticism and expert criticism linger.
- newzimbabwe