Zimbabwe faces a hard test with its new ZiG money. Many businesses shy away from using it. They pick U.S. dollars instead, which remain legal in the country's money system.
Big stores take the ZiG, but small traders often say no to it. The government-backed this new money with gold in April 2024. They hoped it would help Zimbabwe need fewer U.S. dollars.
"People lost trust because of high prices in the past," says money expert Prosper Chitambara. "It needs time for them to trust the ZiG. This depends on keeping prices steady," he adds.
Zimbabwe had to use many foreign money types in 2009. Their own money had lost all worth from very high prices. The ZiG came after the Zimbabwe dollar failed in 2019.
The government wants the ZiG to fix high prices. Right the U.S. dollar makes up more than 80 percent of all buying and selling, say number experts. Leaders plan to stop using U.S. dollars by 2030, making the ZiG the only money.
The new money meets push-back, most often in street markets where rules are hard to enforce. Leaders say stores must take ZiG. They went after bad money trading, which made many traders leave their spots in the city's business area. The bank set up a phone line where people can tell on stores that won't take ZiG.
Store owners say it's hard to use ZiG because they must pay others in U.S. dollars. "We pay rent, goods, and papers with U.S. dollars," says Gwen Satande, who owns a small store in Harare city.
The bank's price for ZiG is 26 to one U.S. dollar, but on the street, people trade 36 ZiG for one dollar. This gap makes business difficult.
The bank changed its rules to help ZiG grow stronger. They told companies that sell things to other lands to keep less foreign money. "This helps keep our money steady and builds up our savings," says bank head John Mushayavanhu.
Big stores take the ZiG, but small traders often say no to it. The government-backed this new money with gold in April 2024. They hoped it would help Zimbabwe need fewer U.S. dollars.
"People lost trust because of high prices in the past," says money expert Prosper Chitambara. "It needs time for them to trust the ZiG. This depends on keeping prices steady," he adds.
Zimbabwe had to use many foreign money types in 2009. Their own money had lost all worth from very high prices. The ZiG came after the Zimbabwe dollar failed in 2019.
The government wants the ZiG to fix high prices. Right the U.S. dollar makes up more than 80 percent of all buying and selling, say number experts. Leaders plan to stop using U.S. dollars by 2030, making the ZiG the only money.
The new money meets push-back, most often in street markets where rules are hard to enforce. Leaders say stores must take ZiG. They went after bad money trading, which made many traders leave their spots in the city's business area. The bank set up a phone line where people can tell on stores that won't take ZiG.
Store owners say it's hard to use ZiG because they must pay others in U.S. dollars. "We pay rent, goods, and papers with U.S. dollars," says Gwen Satande, who owns a small store in Harare city.
The bank's price for ZiG is 26 to one U.S. dollar, but on the street, people trade 36 ZiG for one dollar. This gap makes business difficult.
The bank changed its rules to help ZiG grow stronger. They told companies that sell things to other lands to keep less foreign money. "This helps keep our money steady and builds up our savings," says bank head John Mushayavanhu.
