Johnson Progress

Zimbabwe’s new gold-backed currency, ZiG, is projected to maintain its stability through the year, bolstered by the nation’s record-breaking gold production in 2025, which has substantially fortified the reserves underpinning the monetary unit, leading economists have confirmed.

The Reserve Bank of Zimbabwe (RBZ), under Governor Dr John Mushayavanhu, launched the Zimbabwe Gold (ZiG) currency in April 2024.

The initiative was a central pillar of a strategy to create a lasting and credible domestic currency, fundamentally anchored on tangible reserves including gold, other precious minerals, and foreign exchange.

While the currency initially encountered market skepticism, analysts report its performance has seen steady improvement, driven by surging gold output, a stringent monetary policy, and increasing confidence in the accumulation of reserves.

Official data reveals that Zimbabwe produced approximately 46.7 tonnes of gold in 2025, marking the highest annual output in the country’s history.

Economists assert that this surge has directly enhanced the central bank’s ability to build its reserve holdings, a critical factor in reinforcing the ZiG’s stability and credibility.

Economists emphasize that the unprecedented gold output provides a concrete foundation for the currency’s value.

Zimbabwe Economics Society vice president, Dr Misheck Ugaro, explained that increased gold production directly strengthens the core fundamentals of a commodity-backed currency.

“This is one key attempt to facilitate a long-term durable currency,” Dr Ugaro said, adding, “from what we are seeing the nation is on course to exciting times riding on the gains of the domestic currency… any rise in terms of overall gold production will definitely lead to more strengthening of the domestic currency as the central bank walks the talk on a tight monetary policy while building more reserves.”

He further noted that this positive trend indicates improving macroeconomic prospects, with the systematic buildup of reserves playing a pivotal role in ensuring sustained currency stability.

Academic experts concur, highlighting the broader economic benefits of a stable national currency.

University of Zimbabwe Business School director, Professor Albert Makochekanwa, reiterated that a robust domestic unit is crucial for competitiveness and growth.

“A stable and stronger domestic currency is what lays the foundation for exciting times in the economy,” Professor Makochekanwa stated.

“We are more than hopeful that attempts by the central bank to maintain a tight monetary policy stance will further enhance the competitiveness of the domestic currency… there are so many advantages of using a domestic currency rather than depending on currencies from other nations.”

The government has reaffirmed its commitment to this path of stability.

President Emmerson Mnangagwa cited improved foreign currency inflows and reserve accumulation as evidence of progress.

He reported that the country’s foreign currency generation capacity continues to strengthen, with inflows reaching US$10.4 billion by August 2025, a significant increase from the previous year.

Crucially, he noted that foreign currency reserves had grown to approximately US$900 million by the end of September 2025, a rise from US$700 million in June.

The World Bank has consequently ranked Zimbabwe among the top global performers in progress on foreign currency reserve accumulation.

Supporting these developments, official statistics show a rising volume of electronic transactions conducted in ZiG, signaling its widening acceptance in the economy.

Authorities indicate that the planned introduction of new ZiG banknotes is expected to further bolster public confidence, building upon the current gains achieved through rigorous monetary policy and the solid backing provided by historic gold production and growing reserves.