The major economic event that has taken place in Zimbabwe is the introduction of a new national currency known as the Zimbabwe Gold (ZiG). The Reserve Bank of Zimbabwe (RBZ) introduced the ZiG on 5 April 2024, to take over from the rapidly depreciating Zimbabwean dollar (ZWL).

This launch is Zimbabwe’s sixth attempt to build a solid national currency since 2008. The key objective is to correct severe currency volatility, hyperinflation, and destruction of public trust in the old currency.

The ZiG is currently in a multi-currency environment, with the US dollar and other foreign currencies remaining legal tender and widely accepted for most transactions. The long-term, official strategy is for the ZiG to be the only legal tender in the country by 2030, replacing the US dollar over time and instituting a mono-currency environment.

Currency Information and Exchange

• Asset-Backed: ZiG is funded by a reserve assets basket belonging to the RBZ, including gold, other precious minerals, and foreign currencies like the US dollar. The RBZ is statutorily required to only issue notes and coins of ZiG against the value of these reserves.
• Conversion: All of the existing ZWL bank accounts were switched to ZiG accounts on April 5, 2024. The conversion was based on a specified official rate: approximately 1 ZiG per 2,498.72 ZWL.

The Challenge of De-Dollarization

Zimbabwe is busy diminishing its dependence on the US dollar, which is currently responsible for a significant majority of domestic transactions (heretofore estimated to be as high as 75–80%). The administration sees such reliance as an economic threat. Swapping out the ubiquitous U.S. dollar with the ZiG is a lofty, long-term goal, but it hinges on establishing public trust and sustaining sound economic policies, especially considering the country’s troubled past regarding currency stability.

Strategic Alignment: BRICS and NDB

Zimbabwe’s de-dollarization initiative and introduction of the ZiG fall within a grand strategy to move its economy and foreign policy away from Western-dominated financial institutions.

Zimbabwe has submitted a formal application to join the BRICS grouping (Brazil, Russia, India, China, and South Africa) and is fulfilling the necessary requisites as of mid-2025.

But that’s not all Zimbabwe has also applied to join the BRICS-sponsored NDB. The NDB will lend into infrastructure and sustainable development projects and has an aim of deepening lending in local member currencies for de-dollarization among the members.

NDB funding could reduce reliance on Western financial institutions, which often impose strict structural reform conditions. Crucially, if the NDB lends in the ZiG or other BRICS member currencies, it directly aids the de-dollarization effort by boosting their use in large-scale projects.