Zimbabwean ZiG facts for kids
Quick facts for kids Zimbabwean ZiG |
|
|---|---|
| ISO 4217 Code | ZWG |
| User(s) |  Zimbabwe |
| Subunit | |
| 1⁄100 | cent not a formal subunit; used only in quoting stock prices in the Zimbabwe Stock Exchange |
| Symbol | ZiG |
| Plural | ZiG |
| Coins | ZiG1⁄10, ZiG1⁄4, ZiG1⁄2, ZiG1, ZiG2, ZiG5 |
| Banknotes | ZiG10, ZiG20, ZiG50, ZiG100, ZiG200 |
The Zimbabwe Gold (ZiG) is the official money of Zimbabwe since April 8, 2024. It has the code ZWG and is backed by a lot of valuable things. These include about US$575 million worth of foreign money, gold, and other precious metals.
The ZiG replaced the Zimbabwean dollar. The old currency was losing its value very quickly. For example, by April 5, 2024, it took over 30,000 Zimbabwean dollars to get just one U.S. dollar. Also, prices for goods were going up fast, with inflation reaching 55.3% in March 2024.
Even though there are smaller values like one-tenth or one-quarter of a ZiG, the ZiG doesn't have official smaller parts. However, the Zimbabwe Stock Exchange uses "cents" to show very small parts of a ZiG when talking about stock prices. Each cent is one-hundredth of a ZiG.
Contents
Why the ZiG Was Created
The ZiG currency was first announced on April 5, 2024. Its name comes from some digital money tokens called ZiG, which are now known as GBDT. This new currency is Zimbabwe's sixth try since 2008 to create its own stable money. The goal is to rely less on the U.S. dollar.
Zimbabwe uses a system where several different currencies are accepted. This system started in 2009 because the old Zimbabwean dollar had a period of super high inflation. Besides the ZiG, foreign money, like the U.S. dollar, can also be used for payments.
Before the ZiG, the U.S. dollar was used for most payments in Zimbabwe. By April 2024, about 80% of all money transactions were done in U.S. dollars. When the ZiG started trading on April 8, 2024, about 13.56 ZiG were equal to 1 U.S. dollar. Since then, the use of U.S. dollars in transactions has gone down a bit, from 85% to 70%. The government hopes that people will use the ZiG more and more over time. Businesses are also required to pay half of their quarterly taxes using ZiG.
Features of the ZiG
The Reserve Bank of Zimbabwe shared details about the new currency over the weekend of April 6-7, 2024.
ZiG Banknotes
The ZiG banknotes were first planned in eight different values: 1, 2, 5, 10, 20, 50, 100, and 200 ZiG. However, it was later decided that the 1, 2, and 5 ZiG values would be made as coins instead. The first banknotes started being used on April 30, 2024.
ZiG notes are made from cotton paper. They all have the same size, measuring about 155 by 65 millimeters (about 6.1 by 2.6 inches). Each note also has a Zimbabwe Bird as a watermark, which is a special image you can see when you hold the note up to the light.
According to news reports from May 2024, the head of the Reserve Bank of Zimbabwe, Governor John Mushayavanhu, said that the 50- and 200-ZiG notes would not be released right away. This is because they worry that larger notes might cause prices to go up too quickly. He confirmed that the 1, 2, 5, 10, and 20 ZiG values are now in use. It is believed that the 1, 2, and 5 ZiG values are only available as coins. There has been no update on when the 100 ZiG note might be released.
| Value | Size | Main color | Front design | Back design | Watermark | Date of | Ref. | ||
|---|---|---|---|---|---|---|---|---|---|
| printing | issue | ||||||||
| 1 ZiG | 155 × 65 mm | Blue | Balancing Rocks with trees | Liquid gold being moulded on top of a stack of 12 gold bars | Zimbabwe Bird and "RBZ" | 2024 | not issued | ||
| 2 ZiG | 155 × 65 mm | Green | |||||||
| 5 ZiG | 155 × 65 mm | Pink | |||||||
| 10 ZiG | 155 × 65 mm | Navy blue | 30 April 2024 | ||||||
| 20 ZiG | 155 × 65 mm | Peach and green | 13 May 2024 | ||||||
| 50 ZiG | 155 × 65 mm | Brown | TBA | ||||||
| 100 ZiG | 155 × 65 mm | Olive green | TBA | ||||||
| 200 ZiG | 155 × 65 mm | Red | TBA | ||||||
| For table standards, see the banknote specification table. | |||||||||
ZiG Coins
Coins for the ZiG were introduced in values of 1 ZiG, 2 ZiG, and 5 ZiG. These coins started circulating on April 30, 2024, at the same time as the first banknotes.
There are also plans to release even smaller coins for 1⁄10 ZiG, 1⁄4 ZiG, and 1⁄2 ZiG. The central bank has stated that banknotes for these smaller values will not be made.
How ZiG Was Introduced
Exchange Rates
Before the ZiG, the old Zimbabwean dollar (ZWL) quickly lost about 32% of its value in just two days of trading between banks. It went from 22,950 to 33,903 ZWL for one U.S. dollar. The new ZiG currency was introduced based on the price of gold and a special exchange rate.
On April 6, 2024, the Reserve Bank of Zimbabwe announced that the old ZWL would be changed into ZiG at a rate of 2498.7242 ZWL for every one ZiG. People in Zimbabwe were given 21 days to exchange their old cash for the new ZiG.
The ZiG started trading on April 8, 2024. At first, 13.56 ZiG were equal to one U.S. dollar. After that, its value was allowed to change freely based on the market.
Bank Conversions
All banks and financial companies were told to change all old Zimbabwean dollar amounts, debts, and accounts into the new ZiG currency.
Learn More
- GBDT - Learn about the digital tokens related to ZiG.
- Zimbabwean dollar - Find out about the currency ZiG replaced.
- Mosi-oa-Tunya - Read about a special gold coin from Zimbabwe.
