Scepticism surrounding the introduction and rollout of new Zimbabwe Gold (ZiG) notes — branded by the Reserve Bank of Zimbabwe (RBZ) as the “Big Five” — is neither surprising nor misplaced. Zimbabwe’s monetary history is littered with failed currency experiments, most notably, the collapse of bond notes, which left deep scars on public confidence.
According to the RBZ, the new denominations include ZiG50, ZiG100 and ZiG200, while the ZiG10 and ZiG20 have been upgraded with enhanced security features. On paper, the move signals an effort to modernise and stabilise the local currency. In reality, however, trust — the lifeblood of any currency — remains fragile.
There is broad consensus that Zimbabwe should have its own currency. But a currency’s value is ultimately determined by market forces, not policy statements. Over the years, Zimbabweans have witnessed repeated attempts by authorities to fix exchange rates at levels divorced from economic fundamentals. This persistent disconnect has eroded credibility and left the ZiG facing a familiar dilemma.
While usage of the gold-backed currency may have improved marginally, its acceptability remains limited. The United States dollar continues to dominate transactions nationwide, while the South African rand holds sway in southern regions. In many areas, the ZiG is largely confined to small-scale use — functioning as change in minor transactions at vegetable markets or aboard commuter omnibuses, particularly in urban centres such as Harare.
For ZiG to gain meaningful traction, authorities must go beyond technical adjustments. Public education campaigns could help, but confidence cannot be manufactured through messaging alone. Practical measures — such as requiring certain government services to be paid in local currency — may improve circulation.
Crucially, however, the currency must be accepted for key transactions, including fuel and essential public services. Without this, its long-term viability remains in doubt.
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Zimbabwe’s economy is predominantly informal, with over 70% of activity occurring outside formal systems.
“Pillow banking” remains widespread, reflecting deep-seated mistrust of financial institutions following the hyperinflationary collapse of 2008 to 2009, when many citizens lost their life savings. Formal banks continue to struggle to rebuild that trust.
Ultimately, confidence in a currency cannot be imposed — it must be earned through consistent, credible policy and fiscal discipline. Zimbabweans have learned, often painfully, to be cautious. Years of abrupt policy shifts and limited consultation have hardened public scepticism.
While the introduction of new notes may be necessary, their success will depend not on design or denomination, but on the value they are able to hold. Without restoring trust and aligning policy with market realities, the future of ZiG will remain uncertain.