Zimbabweans Compelled to Utilize US Dollar Amid Delay in Introduction of New Currency, ZiG

Informal traders in Zimbabwe, comprising approximately 75% of the nation’s workforce, have ceased accepting the ZIMdollar, also known as the RTGS dollar, due to concerns over its depreciating value. The implementation of the new ZIG currency, initially scheduled for April 8, has been postponed until April 30th, resulting in the continued dominance of the US dollar in the market.

Economist Happy Zengeni emphasized the necessity for discipline and transparency in implementing new measures aimed at stabilizing the economy and reducing inflation. He highlighted the limited capacity of ordinary Zimbabweans to influence economic liquidity, underscoring the importance of sincere efforts from authorities in managing the transition.

Before the announcement of the forthcoming gold-backed currency, ZIG, the exchange rate for the Zim dollar stood at 28,720 to 1 US dollar. Street vendor Mildred Mapfumo expressed dismay over the devaluation of her savings in RTGs dollars, which she had intended to use for her children’s education expenses.

Zimbabwe has a history of currency changes, including the introduction and eventual phasing out of the RTG dollar and bearer’s cheques. However, there are concerns among Zimbabweans regarding the effectiveness of the new ZIG currency in addressing the persistent inflationary pressures in the country.