Zimbabwe Forex, Gold Reserves Hit Record $731M Supporting ZiG Currency

Zimbabwe's gold-backed currency, the ZiG, has seen a record surge in backing from gold and foreign currency reserves, reaching $731 million in June 2025, a substantial increase from $276 million at its introduction in April 2024. This rise in reserves reflects the Reserve Bank of Zimbabwe's (RBZ) commitment to monetary stability and supports the government's plan to phase out the US dollar and establish the ZiG as the sole legal tender. The economy has strengthened with foreign currency receipts averaging $1.2 billion monthly in early 2025, driven by improved mineral prices, especially gold, and increased diaspora remittances, resulting in a monthly surplus that bolsters foreign reserves. ZiG transactions have increased, indicating growing public acceptance, and the currency has remained relatively stable against the US dollar. The RBZ's strategy aims to contain inflation below 30% by the end of 2025, and the International Monetary Fund has expressed support for the ZiG's transition to Zimbabwe's primary currency. Despite past failures to maintain a stable national currency, the current buildup of reserves and economic improvements provide a stronger foundation for Zimbabwe's move toward full currency sovereignty.