Zimbabwe Adopts ZiG as Sole Legal Tender

The Reserve Bank of Zimbabwe has reaffirmed the legal status of the Zimbabwe Gold (ZiG) currency despite recent concerns about its founding legislation. The bank clarified that the ZiG, established through temporary presidential powers, remains valid and does not lapse with the expiration of those powers. Concurrently, Zimbabwe's ruling party, Zanu-PF, has resolved to adopt the ZiG as the sole legal tender, phasing out the US dollar, although no timeline for this transition has been provided. The ZiG has faced significant challenges, including a 43% devaluation last month, which has diminished public confidence and led to increased dollarization of the economy. The International Monetary Fund has cautioned that the ZiG alone cannot resolve deeper economic issues, such as high inflation and lack of trust in authorities. The recent developments reflect ongoing efforts to stabilize Zimbabwe's monetary system amidst economic turmoil.