Zimbabwe's gold currency, ZiG, is ready to expand to more businesses as people start trusting it better for everyday use. The central bank expects ZiG payments will spread to more places, including gas stations, because citizens see it keeping its value pretty well compared to before.
After ZiG launched last year, certain things like passports and fuel required US dollars. The government made this rule to keep important prices steady until the new money proved itself reliable. Currently, about 35% of all cash changing hands happens in ZiG, up from just 15% when they first started using it.
Zimbabwe's top banker, Dr. John Mushayavanhu, wants a gradual shift away from dollars toward full ZiG use by 2030. He emphasizes that small steps matter most because moving too fast might cause bank runs or other financial problems. His team studied other countries and learned that stable prices matter above everything else when switching to local money.
Electronic payments using ZiG keep growing every month. Banks report ZiG deposits climbed from less than 10% before to around 15% today, signaling growing trust in local currency. New tax rules requiring half of quarterly payments in ZiG also created more demand for the currency.
Monthly inflation numbers have looked very promising for Zimbabwe lately. The rate fell dramatically from 10.5% in January to just 0.1% in March. Food actually cost less in March, falling 0.5%, and everything else increased only 0.2% on average.
Interest rates stay fixed at 35% as the central bank promises more regular updates about money policies. They believe clear communication helps build confidence and makes business planning easier for everyone in the economy.
After ZiG launched last year, certain things like passports and fuel required US dollars. The government made this rule to keep important prices steady until the new money proved itself reliable. Currently, about 35% of all cash changing hands happens in ZiG, up from just 15% when they first started using it.
Zimbabwe's top banker, Dr. John Mushayavanhu, wants a gradual shift away from dollars toward full ZiG use by 2030. He emphasizes that small steps matter most because moving too fast might cause bank runs or other financial problems. His team studied other countries and learned that stable prices matter above everything else when switching to local money.
Electronic payments using ZiG keep growing every month. Banks report ZiG deposits climbed from less than 10% before to around 15% today, signaling growing trust in local currency. New tax rules requiring half of quarterly payments in ZiG also created more demand for the currency.
Monthly inflation numbers have looked very promising for Zimbabwe lately. The rate fell dramatically from 10.5% in January to just 0.1% in March. Food actually cost less in March, falling 0.5%, and everything else increased only 0.2% on average.
Interest rates stay fixed at 35% as the central bank promises more regular updates about money policies. They believe clear communication helps build confidence and makes business planning easier for everyone in the economy.
