Zimbabwe – Launch of new Hybrid (basket of gold and US Dollar) asset backed currency

On April 5, 2024, Zimbabwe launched its new hybrid asset backed currency the ZiG, backed by a basket of gold, diamonds and USD.

Details of the launch may be found on the Aljazeera, BBC News and Reuters news channels.

Sources have recorded that the new currency is backed by 2,522 kilograms of gold and about $100 million in foreign currency reserves which the central bank said it holds. There is also the possibility that the basket may also include a quantity of diamonds.

The GGMF has received many inquiries asking if the Zimbabwe ZiG is supported by the GGMF and we can report that the Zimbabwe ZiG is categorically NOT supported by the GGMF.

GGMF sees serious pitfalls in the strategy which has been publicly outlined by the Central Bank and is communicating these concerns to the government while simultaneously offering assistance and a helping hand.

Details of GGMF’s offer of assistance will be published here in due course.