Zimbabwe Reserve Bank's New Currency ZiG Faces Challenges Despite Positive Forex Market Performance

According to Odaily, the Zimbabwe Reserve Bank (ZRB) has introduced a new currency, Zimbabwe Gold (ZiG), which has performed well in the foreign exchange market but is facing difficulties domestically. The ZRB has implemented new measures to combat black market trading and is urging the public through its X account to report illegal traders and businesses refusing to accept ZiG. Since its physical launch, ZiG's exchange rate against the dollar has risen by 1.9%. On May 15, the police arrested 224 illegal foreign exchange traders, and the ZRB's Financial Intelligence Unit (FIU) froze 90 bank accounts, monitoring bank activities to detect illegal transactions. This crackdown has significantly reduced the number of illegal money changers in the Harare central business district and surrounding areas. However, the central bank is still grappling with a coin shortage issue, and the ZRB plans to increase the supply of small change. From June 10, Zimbabwe's Homelink financial services company will offer ZiG debit card withdrawal services in seven cities, with other financial institutions expected to join in the future. ZiG is Zimbabwe's sixth currency in 15 years, backed by gold and foreign exchange, but its launch has received mixed reactions from the public.